BIR Ruling

June 27, 1973 Mr. Lance M. Renault Director, Administrative Services International Institute of Rural Reconstruction Silang, Cavite S i r : This refers to your letter dated May 21, 1973 requesting for a ruling on the transfer by donation of a 1967 Volkswagen Combi which is not in running condition to the Revenue Mission for Children in Biga, Silang, Cavite by the National Institute of Rural Reconstruction. In reply, I have the honor to inform you that considering the fact that the aforesaid vehicle is a six (6) year 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 were manufactured a six year old model car (of the description) is entitled to 80% depreciation allowance of the Red or Blue Book value, the transfer of the aforesaid vehicle by donation is subject to the payment of compensating tax under Section 190 in relation to Section 184-A (B), both of the Tax Code, as amended by Presidential Decree No. 69. However, in computing the tax, the aforesaid vehicle is entitled to a depreciation allowance of 80% of its dutiable value. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."