BIR Ruling

February 10, 1972 The President Magsaysay Lines, Inc. Magsaysay Bldg. 520 T. M. Kalaw St., Ermita, Manila S i r : This refers to your letter dated February 7, 1972 requesting in effect information as to the time and manner of payment of the 2% carrier's tax, and the basis thereof, under representation substantially contained as follows: You are the agents of Retla Steamship Company, a foreign corporation lifting cargoes of plywood and plywood products, corestock and veneer from the Philippines for the U. S. Pacific Atlantic and Gulf ports. Freight for said products is presently fixed by Freight Tariff No. 21 of the U. S. Maritime Commission effective January 5, 1972, to wit: Atlantic & Pacific Ports Gulf Ports Plywood and Plywood Products $27.00 $35.00 Corestock & Veneer $26.00 $30.00 However, Freight Tariff No. 21 allows discounts on shipments in excess of 1000 MT in the case of plywood and plywood products and 2000 MT in the case of corestock and veneer as follows: Plywood and Plywood Products to Pacific Ports 1,000 MT and over but less than 2,000 Per MT $1.00 2,000 MT and over but less than 3,000 Per MT $2.00 3,000 MT and over Per MT $3.00 Plywood and Plywood Products to Atlantic Ports 1,000 MT and over but less than 2,000 Per MT $3.00 2,000 MT and over but less than 3,000 Per MT $4.00 3,000 MT and over Per MT $5.00 Corestock and Veneer to Pacific, Atlantic and Gulf Ports 2,000 MT and over but less than 3,000 Per MT $1.00 3,000 MT and over Per MT $2.00 In reply, I have the honor to inform you that as agent of Retla Steamship Company, you are responsible for the payment of the 2% tax on the gross receipts derived from its Philippines liftings. Under your representation, the taxable gross receipts of your principal shall be computed either at the regular rate fixed by Freight Tariff No. 21, or at the discounted rate, as the case may be. Considering that the gross weight of every shipment is actually ascertainable at the time of shipment from the freight manifests, you may compute the tax on the basis of the discounted rate if properly applicable as prescribed by Freight Tariff No. 21. You further intimated that it is your desire to pay the 2% tax based on the shipments for the month as shown on the freight manifests without awaiting the collection reports from your principal which may take sometime. Considering that the freight is payable abroad, you may properly pay the tax on the basis of shipments during the month. cdta Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue