Existing Rates of Import Duties and Taxes on Machineries and Equipments and Concessionary Rate of Import Duty and Other Taxes at the Import Point

March 25, 1997 BIR RULING NO. 026-97 100 (a) (1) 000-00 026-97 Hon. Syed Masud Mahmood Khundoker Second Secretary & HOC Embassy of the People's Republic of Bangladesh 106 Paseo de Roxas corner Perea Street Makati City S i r : This refers to your fax letter dated March 13, 1997 requesting information regarding the existing rates of import duties and taxes on the machineries and equipments listed therein which one industry in Rural Telecommunication sector in Bangladesh would like to import from the Philippines and whether there is any concessionary rate of import duty and other taxes at the import point. In reply, please be informed that pursuant to Section 100 (a) (1) of the Tax Code, as amended by RA No. 7716 as further amended by RA No. 8241, the export sales by VAT-registered persons of the machineries and equipments listed in your said letter shall be subject to VAT at 0%. This means that the said export sale although a taxable transaction shall not result in any output tax on the part of the VAT-registered person but the input tax on his purchases of goods, properties or services related to such zero-rated sale shall be available as tax credit or refund. As regards the rate of import duties on such importation, it is suggested that you direct your request to the Commissioner of Customs who has jurisdiction on the matter. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue