BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Mar 7, 1972
Full text
March 7, 1972 Mr. Pantaleon C. Gavino 421 Manuel de la Fuente Street Sampaloc, Manila S i r : This refers to your letter dated February 1, 1972 requesting information as to what tax a manufacturing firm should pay on the exportation of handicraft products (cottage industries). In reply, I have the honor to inform you that under Section 188(e) of the Tax Code, articles shipped or exported abroad by the manufacturer or producer, irrespective of any shipping arrangement that may be agreed upon which may influence or determined the transfer of ownership of the articles so exported, are exempt from sales tax. Consequently, the export sales of a handicraft manufacturer is exempt from the sales tax. It is, however, liable to payment of income tax. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue
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