BIR Ruling [DA-085-96]

February 26, 1996 BIR RULING [DA-085-96] United Doctors Medical Center No. 290 Espaa cor. 6 N. Ramirez Quezon City Attention: Dr . Delfin A . Tan President Gentlemen : This refers to your letter dated January 5, 1996 requesting exemption from value-added tax on your importations of one (1) set of GE Systec 18001 Computerized Tomography Scanner System and one (1) complete set of GE Stenoscope 9000 Mobile Surgical C-arm System from Tokyo, Japan, to be used actually, directly and exclusively for your hospital/educational purposes. It is represented that United Doctors Medical Center (UDMC) is a corporation organized and existing under the laws of the Philippines; that it operates a medical clinic, a hospital or hospitals for nursing, caring for, treating and curing patients, and to give clinical, medical, obstetrical, pediatrical, surgical, orthopedic or psychiatric service, physical medicine and/or any other service in connection therewith; that as such, it performs coordinated and interrelated functions with the university for the furtherance of its educational purposes; and that it has been certified to by the Department of Education, Culture and Sports in its letter dated May 25, 1994. In reply, please be informed that your request cannot be granted for lack of legal basis. The United Doctors Medical Center being a stock corporation is not covered by the constitutional exemption. Accordingly, its importation, of medical equipment is subject to value-added tax imposed under Section 101(a) of the Tax Code, as amended. cdtech Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)