Gross Receipts on Incoming Cargo by Carriers Engaged in Foreign Trade Not Subject to 2% Common Carrier's Tax

January 11, 1982 BIR RULING NO. 001-82 207-00 000-71 001-82 Pangasiwaan ng Pagpapautang sa Pagsasaka (Agricultural Credit Adm.) Taft Avenue, Metro Manila Attention: Mr . Robert C . Porter Assistant Administrator Gentlemen : This refers to your letter dated October 22, 1981, requesting advise whether gross receipts on incoming cargo derived by a carrier engaged in foreign trade is not subject to the 2% common carrier's tax. You stated that your Office withheld the amount of P1,107.69, representing 3% of the claim for incoming freight charges by Eastern Shipping Lines, Inc.; that the latter is a carrier engaged in foreign trade; that said firm had been previously informed by this Bureau on October 21, 1977 that on its gross receipts from incoming freight or cargoes, it is not subject to the common carrier's tax; and that you would like to be advised whether said ruling is still being enforced. In reply, please be informed that gross receipts derived by Eastern Shipping Lines, Inc. from incoming cargo or freight is not subject to the 2% common carrier's tax imposed under Section 207 of the Tax Code. Very truly yours, RUBEN B. ANCHETA Acting Commissioner