BIR Ruling

September 11, 1969 Mr. Enrique M. Garcia, M.D. Chairman, Department of Surgery College of Medicine University of the Philippines 547 Herran, Manila S i r : This refers to your letter dated August 11, 1969 requesting that certain imported bulbs needed in the Department of Surgery of the Philippine General Hospital be exempted from the payment of internal revenue taxes. In reply, I regret to inform you that your request cannot be granted for lack of legal basis. Goods imported by a government agency or instrumentality are not tax exempt. It may be mentioned in this connection that under the provisions of Section 1205 of Republic Act No. 1937, otherwise known as the Tariff and Customs Code, all importations by the government for its own use or that of its subordinate branches or instrumentalities, or corporations, agencies or instrumentalities owned or controlled by it are subject to the compensating tax. However, upon certification by the head of the department or political subdivision concerned, with the approval of the Auditor General, that the imported articles are actually being used by the government or any of its political subdivisions concerned, the compensating tax collected on such importations shall be refunded to the government or the political subdivision which paid it. LexLib Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue