BIR Ruling

February 7, 1969 Juan G. Collan Jr. and Luis Ma. Guerrero Attorneys At Law 508 AIU Building Ayala Avenue, Makati, Rizal Gentlemen : This refers to your letter dated January 30, 1969 requesting information as to whether or not an employee of one of your clients, who is coming to the Philippines can qualify under par. (f) of Section 190 of the National Internal Revenue Code as that his personal and household effects may be exempt from the compensating tax. In reply, I have the honor to inform you that under Section 190(f) of the Tax Code, as amended by Republic Act No. 4103, persons coming to settle for the first time in the Philippines including Filipino citizens who have resided abroad for not less than ten years are, among others, exempt from the compensating tax on professional instruments and implements, tools of trade, occupation or employment, wearing apparel, domestic animals, and personal and household effects brought in by them for their own use accompanying them or arriving within ninety (90) days before after the arrival on their owners upon the production of evidence satisfactory to the Commissioner of Internal Revenue that such persons are coming to settle in the Philippines, that the articles were brought from their former place of abode, and that the change of residence is bona-fide . It being represented that the employee of your client is coming to the Philippines under treaty traders category for one (1) year only, he cannot claim exemption from the payment of the compensating tax due on his personal and household effects under the aforecited law. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue