BIR Ruling No. 007-65

April 12, 1965 BIR RULING NO. 007-65 Mr. Cedar V. Pastor Assistant Commissioner (Operations) Bureau of Customs M a n i l a S i r : This refers to your letter dated February 26, 1965, stating that your brother, Mr. Isagani V. Pastor, joined the United States Navy in December, 1944 and in 1945 became an American citizen; That upon his discharge from the service in 1957, he took up and finished a preparatory course at Del Mar College and subsequently at the Boston University where he received the degree of Bachelor of Science in Motion Picture and Visual Aids; That thereafter he took up and received the degree of Master of Arts in Cinema; that subsequently, he was employed by the USIS with station in Cambodia as Foreign Film Officer; That he resided in the United States for more than ten (10) years and in the course of his stay abroad, he acquired professional instruments, implements and tools for his own use such as; (a) film editing instruments, (b) dubbing instruments, and (c) cameras, and (d) other processing, laboratory instruments; and equipments; and that finally he is contemplating to return and reside in the Philippines to establish either a Motion Picture Laboratory Service or a "small time" motion picture studio. cdta You now ask the following questions: "(1) Assuming that my brother Isagani V. Pastor has fully complied with all the other legal requirements of the Bureau of Immigration and your Bureau, can he "come home" to the Philippines with all of his professional motion picture instruments and implements, tools of his own trade, occupation and employment, free and exempt from payment of compensating tax? "(2) Having lived in the USA for more than 10 years, what is the maximum export value, if any, of his personal and household effects free from compensating tax?" In answer thereto, I have the honor to inform you that under the provisions of subparagraph (f) of the first paragraph of Section 190 of the Tax Code, as amended by Republic Act No. 4103 persons coming to settle for the first time in the Philippines including Filipino citizens who have resided abroad for not less than ten (10) years are, among others, exempt from the compensating tax on professional instruments and implements, tools of trade, occupation or employment brought in by them for their own use either accompanying them or arriving within ninety (90) days before or after their arrival. From your representation, it is the opinion of this Office that your brother falls within the purview of the law. Accordingly, the professional instruments, implements and tools which he will bring into this country shall be exempt from the compensating tax. Your brother may bringing in tax-free, and without limitations as to their value, the aforesaid professional instruments and implements, wearing apparel and personal effects, household effects, and domestic animals. As regards household effects, however, he shall be entitled to exemption to only one of each kind of household article. This is to certify that the above ruling has been signed by the Commissioner of Internal Revenue on April 12, 1965. Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue (SGD.) PRISCILLA R. GONZALES Asst. Revenue Operations Head (Legal)