BIR Ruling [DA-255-00]

May 2, 2000 BIR RULING [DA-255-00] 107 (A) DA-628-99 Philippine National Police Camp Crame, Quezon City Attention: Panfilo M . Lacson Police Director General Chief, PNP Gentlemen : This refers to your letter dated April 17, 2000 stating that the Chinese-Filipino Business Club, Inc. represented by Atty. Daniel Y. Laogan, offered to donate thirty (30) units of Hyundai cars from South Korea to the Philippine National Police (PNP); and that the said donation is very vital to the enhancement of the PNP's operational capability to insure public safety and to maintain peace and order in the country. Based on the foregoing, you now request for exemption from donor's tax on the donation of the said vehicles in the interest of National Economic Development. In reply, please be informed that said donation is exempt from the donor's tax since it is made to or for the use of the PNP, an entity created by the National Government which is not conducted for profit, pursuant to 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) However, the importation of the said vehicles 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. 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. acAIES Very truly yours, Commissioner of Internal Revenue By: (SGD.) ESTELITA C. AGUIRRE Deputy Commissioner (Resource Management Group) (Officer In Charge)