BIR Ruling

June 29, 1976 Mr. Tomas Devera Barrio Sta. Teresa Tubao, La Union S i r : This refers to your letter dated May 22, 1976 requesting information as to whether you are entitled to tax exemption on local purchases of home appliances, automobile, gadgets and tools such as garden tools. It is represented that you are a retiree from the United States; that you have acquired an Immigrant Certificate of Residence in the Philippines; and that you are now establishing your home in the Philippines. In reply, I have the honor to inform you that as an Overseas Filipino coming to settle permanently in the Philippines, you are entitled to tax-free purchases of locally manufactured household appliances, instruments and tools, including an automobile, pursuant to Presidential Decree No. 439 subject to the following conditions prescribed in Section 2 thereof: a. Such items are purchased from authorized dealers and are brand new; b. In the case of vehicles, that the same are registered under the Progressive Car Manufacturing Program; c. In the case of household appliances, professional instruments and other tools of trade, occupation or employment, that the same are locally manufactured and/or assembled; d. That the purchases are made locally and in United States currency; and e. That the purchases are made within a period of six (6) months from date of arrival. 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."