BIR Ruling

November 20, 1972 Overseas Christian Servicemen's Centers P. O. Box 1956 Manila Attention: Mr . Kenneth S . Brooks Business Manager Gentlemen : This refers to your letter dated November 16, 1972 requesting information as to what tax you are liable on the sale of One (1) 1962 Model Ford Falcon two (2) door six (6) cylinder car which was imported tax-free under the provisions of Republic Act No. 1916. It is represented that above-described motor vehicle was entered into the Philippines tax-exempt under Republic Act No. 1916 on July 25, 1962 in the name of Berean Mission, Inc.; that on July 2, 1969, said vehicle was transferred to your mission, a religious corporation duly registered in the Philippines and was duly licensed in your name under Registration Certificate No. FRC 019127 dated July 2, 1869; and that you now intend to dispose said vehicle because the same is more than ten (10) years old and is fully depreciated. In reply, I have the honor to inform you that considering the fact that the aforesaid vehicle is 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. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue