BIR Ruling

July 7, 1970 Abbott Laboratories (Philippines) P. O. Box 29, Makati Rizal, D-708 Attention: Mr . Alfredo Gandionco Controller Gentlemen : This refers to your letter dated February 4, 1970, stating the following: "The Omnibus Tax Law subject the importers and manufacturers of Saccharine and other sweetening agents to a fixed tax of P500.00. "We are an importer of Saccharine and Sodium Cyclamate. A combination of these two ingredients plus other chemicals as excipients is "SUCARYL", a sweetening preparation for diabetics. "We would like to know whether or not: 1. We are subject to the fixed tax of P500.00. 2. We are subject to both the fixed tax also the percentage tax considering that we pay the specific tax when we import Saccharine." In reply, I have the honor to inform you that you are subject to the fixed tax of P500.00 as importer of saccharine, pursuant to Section 182(A)(3)(u) of the Tax Code, as amended by Republic Act No. 6110. You are also subject to the annual fixed tax of P50.00 and to the 7% sales tax as manufacturer of "SUCARYL", pursuant to sections 182(A)(1) and 186 of the Tax Code, even if you have paid the specific tax on the saccharine which is used in the manufacture of the said finished product. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue