BIR Ruling

August 10, 1967 Mr. Vicente P. Obillo Lingsat, San Fernando La Union S i r : This refers to your letter dated July 18, 1967 requesting information as to whether or not a car which you bought in the United States when you were in the active service in the U.S. Air Force and brought to the Philippines tax-free is subject to compensating tax after your retirement from the U.S. Air Force in 1965. LLjur In reply, I have the honor to inform you that it being represented that you are an American citizen who brought to the Philippines the car tax-free and since you acquired the car in question when you were qualified as a tax-exempt person under the provisions of the U.S.-P.I. Military Bases Agreement, your continued possession thereof for your personal use after your retirement from the U.S. Air Force will not render you liable for the payment of the compensating tax thereon. This will serve as authority for the Land Transportation Commission in effecting the re-registration of the car in question free from the compensating tax. It is of course understood that the registration "Subject to tax when sold to non-exempt person.' cdt Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue