BIR Ruling

May 18, 1967 2nd Indorsement Returned to the Revenue Director, Revenue Region No. 17, Cagayan de Oro City, the within papers relative to the request for a ruling of the Collector of Customs of Cagayan de Oro City as to whether or not Mr. Laird Whipple who came to the Philippines under a pre-arranged employment and who is a holder of a Treaty Traders visa can be considered as a "person coming to settle for the first time in the Philippines" for purposes of exempting his nine (9) crates of personal and households effects from the payment of compensating tax under Section 190(f) of the Tax Code, as amended by Republic Act No. 4103. This Office on several occasions ruled that a foreigner who came to the Philippines under a pre-arranged employment and who is a holder of a treaty trader's visa falls within the purview of the provision of Section 190(f) of the Tax Code. As such, Mr. Whipple's household and personal effects which he brought with him is exempt from the compensating tax. The exemption, however, does not apply to automobiles. Moreover, while the quantity of household effects of such foreigner brought in tax-free is not limited as to value, nevertheless, he is entitled to only one of each kind of such items. cdt (SGD.) MISAEL P. VERA Commissioner of Internal Revenue