35% Compensating Tax — Colgate-Palmolive Phil., Inc

January 29, 1981 BIR RULING NO. 019-81 204 17-80 019-81 Corporate Brokerage Corporation Suite 201 T & D House 356 Magallanes Street Intramuros, Manila Attention: Mr . Mariano V . Riso Operator Manager Gentlemen : This refers to your letter dated July 8, 1980, requesting reconsideration of Authority to Release Imported Goods No. IT-80-0008920, subjecting the importation of your client, Colgate-Palmolive Phil., Inc., to the 35% compensating tax. You contend that said importation will be used for refrigeration purposes as shown in drawing No. 2-306; that the same will be installed in your factory to be used exclusively for cooling of water in the manufacture of soap by your client and should therefore be taxed at a lower rate. In reply, please be informed that so-called cooling tower imported by your client is a part of an air-conditioning unit of the central type. Such being the case, said importation of article is subject to the compensating tax prescribed by Section 204 of the Tax Code of 1977, as amended, at the rate of 25% imposed by Section 196(j) of the same Code, plus 10% under Batas Pambansa Blg. 41 or a total of 35%. However, if the said imported article, will be sold, bartered or exchanged, the same shall be subject to the advance sales tax. Very truly yours, RUBEN B. ANCHETA Acting Commissioner