BIR Ruling

May 29, 1973 Messrs. Salcedo, Del Rosario, Bito, Misa & Lozada P.O. Box 781, Manila 12105 Gentlemen : This refers to your letter dated May 24, 1973, requesting in behalf of the IATA Tax Committee Working Group, that view of the IATA petition for amendment of Section 24(b)(2) of the Tax Code, as amended by Presidential Decree No. 69, imposing a 2 % tax on the gross Philippine billings of international carriers, which petition is still under study and consideration by the authorities concerned, IATA members be allowed to file quarterly declarations and pay the corresponding estimated tax on or before May 30, 1973, based on the method or basis employed by foreign airlines for determining taxable income prior to said amendment by Presidential Decree No. 69. In reply thereto, I have the honor to inform you that your request cannot be granted. International carriers already became subject to the 2 % tax on gross Philippine billings beginning January 1, 1973, the date of effectivity of Presidential Decree No. 69. Said carriers continue to be subject to the said rate of tax until the law providing for such rate is repealed or superseded. Consequently, during the time the law is in force, a different basis or method of computing the income tax on international carriers cannot be legally sustained. aisadc Very truly yours, (SGD.) CONRADO P. DIAZ Acting Commissioner of Internal Revenue