Commercial Pilot's Privilege Tax Exemption for Unpaid Services Rendered During Training

January 7, 1960 BIR RULING NO. 027-58 The Honorable The Secretary of Foreign Affairs M a n i l a Re: Your Ref . File No . 390 . 31, Germany S i r : In compliance with the request contained in your endorsement dated June 24, 1959, I have the honor to inform you as follows: cdi The pertinent portion of the last paragraph of section 183 of the Tax Code, as amended reads: "In case of tax-free articles brought or imported into the Philippines by persons, entities, or agencies exempt from tax which are subsequently sold, transferred, or exchanged in the Philippines to non-exempt private persons or entities, the purchasers shall be considered the importers thereof." A provisions similar to the one quoted above is also found in the last paragraph of section 190 of the same Code. The former applies to original sales made by tax-exempt individuals or entities of tax-free articles to non-exempt persons or individuals articles bought are intended for resale by the purchasers; whereas, the latter, to original sales of tax-free articles intended for use of the purchaser. Foreign diplomatic officers stationed in this country are exempt from payment of the tax on the articles brought or imported by them here for their use. The same exemption is also accorded to such officers by the Federal Republic of Germany. However, under our law, where said officers sell or transfer the articles brought or imported by them into this country to non-exempt persons or entities, the purchasers thereof shall be considered as the importers who shall be liable to the sales or compensating tax prescribed in the aforecited provisions of the Tax Code. cdll This Office has no power to waive the collection of taxes prescribed by law. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue