BIR Ruling

March 22, 1973 Rev. Leonardo D. Marasigan Pastor, Riverside United Church United Church of Christ in the Philippines E. de los Santos Avenue Quezon City S i r : This refers to your letter dated March 6, 1973 requesting that the transfer by donation of a motor vehicle, Plymouth Sedan, Model 1959 with Motor No. 23089240 entered tax free under the provisions of Republic Act No. 1916 by the Methodist Church in the Philippines, 900 United Nations Ave., Manila for your religious use be exempt from the payment of tax. In reply, I have the honor to inform you that considering the fact that aforesaid vehicle is a fourteen (14) year old model; that under Department Order No. 13-62, dated April 18, 1962 which published the guidelines in determining the dutiable value of all makes of cars, regardless of country where manufactured, an old model car of the description is entitled to 90% depreciation allowance of the Red or Blue Book value, it is the opinion of this Office that the transfer of the aforesaid vehicle by donation is a disposition of a fully depreciated asset. Such being the case, the same may be disposed of without the payment of internal revenue tax due thereon. cdt Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue