Taxability of Manufacturer of Coconut Shell Charcoal
BIR Ruling No. 022-68 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Oct 7, 1968
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October 7, 1968 BIR RULING NO. 022-68 The President & General Manager Sun-Ripe Coconut Products, Inc. 747 Muelle de la Industria corner Muelle de Binondo, Manila S i r : This refers to your letter dated April 29, 1968, stating that you operate a desiccated coconut factory and an oil mill; that you accumulate coconut shells by virtue thereof; that in order to find an outlet for the coconut shells you plan to process the same into coconut shell charcoals for exportation as well as for local consumption; and that before you proceed to invest for the processing equipment, you want to know what taxes are to be paid for local sales as well as on the exportations of manufactured shell charcoals. In reply, I have the honor to inform you that as manufacturer of coconut shell charcoal, you are subject to the annual fixed tax of P20.00 prescribed in Section 182 (A)(1) of the Tax Code and to 7% sales tax on your local sales of manufactured charcoals pursuant to Section 186 of said Code. However, your export sales of said products are exempted from the percentage tax, pursuant to Section 188(e) of the same Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue
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