BIR Ruling [DA-130-00]

March 1, 2000 BIR RULING [DA-130-00] 101 (A) (2), 104, 107 (A) 110-91 Cong. Lamberto L. Macias Memorial Hospital Siaton, Negros Oriental Attention: Dr . Dante G . Domingo , M . D . Chief of the Hospital I Gentlemen : This refers to your letter dated July 15, 1999 requesting in effect for exemption from customs duties and value added tax on your importation of various hospital equipment and medical supplies from abroad. It appear from the documents submitted that the Philippine Medical Association of West Virginia, a non-profit organization with address at Chapmanville, West Virginia, U.S.A. is donating various hospital equipment and medical supplies to the Cong. Lamberto L. Macias Memorial Hospital (Siaton District Hospital), a municipal government hospital of the 3rd District of Negros Oriental; and that this will be done through the coordination and guidance of Representative Herminio G. Teves of the said District. In reply, please be informed that the above request cannot be granted for lack of legal basis. Your importation of various hospital equipment and medical supplies from foreign institutions, is subject to 10% VAT based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus customs duties, excise tax, if any, and other charges, such tax to be paid by the importer prior to the release of such goods from customs custody pursuant to Section 107(A) of the Tax Code of 1997. However, said importation, is exempt from the donor's tax if it is made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government, in accordance with Section 101(A)(2) of the Tax Code of 1997 in relation to Section 104 of the same Code. (BIR Ruling No. 110-91 dated June 18, 1991) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)