BIR Ruling

March 21, 1969 Mermac, Incorporated P.O. Box 477, Makati Commercial Center Makati, Rizal Attention: Mr . R . R . Mondoedo Attorney-in-Fact Gentlemen : This refers to your letter dated April 17, 1969, requesting information as to the correct rate of compensating tax due on your importation of silver-plated wares consisting of spoons, forks, knives, etc. for the exclusive use of your hotel. It is represented that the wares are plated with 0.11 gram of silver per square inch and that the base metal on which the plating is made is an alloy consisting of 20% nickel, 46% copper and 34% sine. In reply, I have the honor to inform you that under Section 184(b) of the Tax Code, imported articles made of, mounted, ornamented or fitted with precious metals of imitations thereof or ivory are subject to the 50% sales tax. Accordingly, your importation of silver-plated wares are subject to 50% compensating tax pursuant to Section 190 in relation to Section 184(b), both of the Tax Code. LLphil Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue