BIR Ruling

January 23, 1969 Mr. Galicano Meoria Bantayan, Cebu J-309 S i r : In reply to your letter dated November 15, 1968 requesting information as to how you may go about your mail order business which will involve exportations and importations of commodities at prices ranging from $1.00 to $5.00 in such a way that you will not violate any internal revenue law. I have the honor to inform you than as an importer you are subject to the annual fixed tax of P20.00 prescribed by Section 182(A)(1) of the Tax Code. The commodities imported for resale are subject to the 7%, 30% or 50% advance sales tax based on the landed cost thereof, plus the corresponding mark-up provided in Section 183(b) in relation to Sections 184, 185 and 186, as the case may be, all of the Tax Code. Moreover, as exporter of locally purchased articles, you are subject to the graduated annual fixed tax prescribed in Section 182(A)(2) of the Tax Code. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue