Correct Rate of Sales Tax Applicable on Original Sale of Imported Agricultural Machineries, Equipment and Spare Parts
BIR Ruling No. 019-86 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Mar 3, 1986
Full text
March 3, 1986 BIR RULING NO. 019-86 165-A-2 000-00 019-86 Gentlemen : This refers to your letter dated January 22, 1986 requesting clarification as to the correct rate of sales tax applicable on your original sale of imported agricultural machineries, equipment and spare parts, i.e., stationary and marine diesel engines, 4-wheel tractors, power tillers, agricultural sprayers and irrigation pumps, which articles you considered as essential. In reply, please be informed that Section 165(A)(3) of the Tax Code, as amended by PD 2031, enumerates the articles classified as essential taxable at the rate of 10% which enumeration does not include the commodities sold by you. Accordingly, your aforesaid imported articles are classified as ordinary subject to 20% sales tax on its original sales pursuant to Section 165(A)(2) of the Tax Code, as amended. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner
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