BIR Ruling

March 19, 1973 Chrysler Philippines Cainta, Rizal Attention: Mr . J . E . Ramos Gentlemen : This refers to your letter dated March 16, 1973 requesting exemption from the compensating tax of your importation on January 26, 1972 of two Minica units which you used as engineering samples in connection with your proposal to the Board of Investments progressive Car Manufacturing Program. It appears that you were able to secure the release from customs of the two Minica units without the prepayment of the compensating tax thereon by posting bond conditioned upon the reexport of the two units. In reply, I have the honor to inform you that under the law then in force at the time of your importation of the two Minica units, as well as under existing law, this Office is without authority to exempt you from the compensating tax due on your importation of the two Minica units. However, pursuant to Section 190 of the National Internal Revenue Code, as amended by Presidential Decree No. 69, this Office believes, as it shall hereafter recommend, that the President of the Philippines may exempt your importation of the two Minica units from the compensating tax in the interest of economic development upon recommendation of the NEDA. Your donation of the two Minica units will also be exempt from the donor's tax if you should donate them to the persons and entities mentioned in Section 112 of the Tax Code, as amended by Presidential Decree No. 69. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue