BIR Ruling

June 28, 1967 Mr. Tony Fernando 26-D Lasalle Street Cubao, Quezon City S i r : This refers to your letter dated June 13, 1967 requesting information as to the taxes due on imported articles such as amplifier (stereo), speaker system or a baffle complete with woofer and tweeter inside it, and a turntable for personal use; and what are the taxes due if the same are imported for re-sale? In reply thereto, I have the honor to inform you that imported articles enumerated above for personal use are subject to 30% compensating tax based on the landed cost thereof pursuant to Section 190, in relation to Section 185-B, both of the National Internal Revenue Code. If the same are imported for re-sale, barter or exchange, they are subject to 30% advance sales tax based on the landed cost thereof plus 50% mark-up, pursuant to Section 183(b), in relation to Section 185-B of the same Code. An importer of the foregoing articles for re-sale, barter or exchange is also subject to the P20.00 annual fixed tax prescribed by Section 182(A)(1) of the same Code. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue