BIR Ruling

May 18, 1972 Honorable Luigi Martelli Ambassador Italian Embassy Manila S i r : This refers to your letter dated April 28, 1972 requesting information as to whether or not the Philippine Government would allow the free importation of articles consisting of wedding gifts and equipment of Italian women who, after their marriage with a Filipino or a foreign citizen permanently residing in the Philippines, wish to transfer their permanent residence in the Philippines. In reply, I have the honor to inform you that under Section 190(f) of the National Internal Revenue Code, professional instruments and implements, tools of trade, occupation or employment, wearing apparel, domestic animals, and personal and household effects belonging to persons coming to settle for the first time in the Philippines including citizens of the Philippines who have resided abroad for not less than ten years, for their own use and not for barter, sale or exchange, accompanying such persons, or arriving within ninety days before or after the arrival of their owners, upon the production of evidence satisfactory to the Commissioner of Internal Revenue that such persons are actually coming to settle in the Philippines, that the articles were brought from their former place of abode, that change of residence is bona fide, are exempt from the compensating tax therein imposed. However, no merchandise of any kind, machinery or other articles for use in manufacture, shall be classified under the aforesaid subsection. An Italian woman who, after her marriage with a Filipino or foreign citizen permanently residing in the Philippines, wish to transfer her permanent residence in the Philippines falls within the purview of "persons coming to settle for the first time in the Philippines" under the aforesaid provision of the National Internal Revenue Code and, therefore, she may bring in tax-free, and without limitation as to value, the following: 1. Professional instruments and implements; 2. Tools of trade, occupation or employment; 3 Wearing apparel; 4: Domestic animals; and 5. Personal and household effects. Although automobiles and other motor vehicles come under the category of personal property, however, they are neither personal effects nor household effect. Consequently, the exemption privileges granted by the law do not apply to them. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue