BIR Ruling

July 11, 1972 Philippine Branch of Filipino Assembly of the First, Inc. Caba, La Union Attention: Mr . Andres Ilagan Gentlemen : This refers to your letter dated June 28, 1972 requesting exemption from the payment of taxes on the sale of a 1957 Model Chevrolet car which arrived tax-free under the provisions of Republic Act No. 1916 in 1963. In reply, I have the honor to inform you that considering the fact that the aforesaid vehicle is a fifteen (15) 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 where manufactured, all old models are entitled to 90% depreciation allowance of their Red or Blue Book value, it is also opinion of this Office that the transfer of the aforesaid vehicle to a non-exempt person is a disposition of a dully depreciated asset. Such being the case, the same may be disposed of by sale without the payment of internal revenue tax due thereon. aisadc Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue