BIR Ruling [DA-402-00]

November 21, 2000 BIR RULING [DA-402-00] National Drug Law Enforcement and Prevention Coordinating Center Camp Crame, Quezon City Attention: Jewel F. Canson Police Deputy Director General Executive Director Gentlemen : This refers to your letter dated August 23, 9000 stating that the U.S. government is intending to donate $51 million worth of equipment to support the establishment of the Philippine Drug Data Center at the National Drug Law Enforcement and Prevention Coordinating Center; and that the establishment of a drug information center shall greatly contribute to the success of the government's over-all efforts against illegal drugs. Based on the foregoing., you now request for exemption from whatever taxes due on the intended donation. In reply, please be informed that the importation of the intended donation is exempt from the donor's tax since it will be donated to an entity created by the National Government which is not conducted for profit, pursuant to Section 101(B)(1) of the Tax Code of 1997. However. the importation is subject to the 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. (BIR Ruling No DA-446-98 dated October 5, 1998) 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, and/or any of the requirements imposed in this letter are not complied with, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal and Inspection Group