BIR Ruling

February 6, 1973 Mr. Byron W. Clark United Missionary Office P.O. Box 876, Commercial Center Makati, Rizal D-708 S i r : This refers to your letter dated February 1, 1973, requesting that the transfer by sale to Reverend John Beran of the United Presbyterian Church by the United Christian Missionary Society of a Willys Station Wagon, Model 1960, Motor No. IT-86950 be exempt from the payment of tax under Department Order No. 13-62 dated April 18, 1962. In reply, I have the honor to inform you that considering the fact that the aforesaid vehicle is more than ten (10) years old model; that under Department Order No. 13-62, dated April 18, 1962 which published the guidelines in determining the dutiable value of all makes of cars, regardless of country where manufactured, an old model car of the description is entitled to 90% depreciation allowance of its Red or Blue Book value, it is the opinion of this Office that the transfer of the aforesaid vehicle by sale is a disposition of a fully depreciated asset. Such being the case, the same may be disposed of without the payment of internal revenue tax due thereon. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue