BIR Ruling

September 8, 1976 The President Hanson Industries, Inc. 116 Tandang Sora St. Caloocan City S i r : This refers to your letter dated June 18, 1976 requesting that this Office issue a certification classifying your products, Hanson Herbal Shampoo and Hanson Super Fresh Shampoo as articles subject to the 7% sales tax under Section 186 of the Tax Code. In reply, I have the honor to inform you that pursuant to Section 4 of Revenue Regulations No. V-42, otherwise known as the Toilet Preparations Regulations, shampoo oils and liquids containing more than 5% saponaceous matter and, therefore, partaking the nature of soap and intended solely for the cleansing purposes, are taxable at the rate prescribed in Section 186 of the Tax Code. As laboratory analysis of the products conducted by this Office reveal that Hanson Herbal Shampoo and Hanson Super Fresh Shampoo contain 19.54% and 20.10% saponaceous matter, respectively, your sales of said products are subject to the 7% sales tax prescribed in Section 186 of the Tax Code. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."