BIR Ruling No. 031-61

January 23, 1961 BIR RULING NO. 031-61 The Regional Director Regional District No. 3 Manila S i r : Reference is made to your letter dated January 11, 1961, relative to BIR Ruling No. 53, S. of 1958, declaring the exemption from income tax of "income derived by citizens or associations or corporations organized under the laws of the Philippines, at least sixty per cent of the capital of which is owned by citizens of the Philippines, engaged or which shall engage exclusively in the overseas shipping business". LLphil In reply thereto, I have the honor to inform you that such exemption is granted for a period of ten (10) years or until September 8, 1965, in accordance with Section 2 of Republic Act No. 1407 which was approved on September 9, 1955. The conditions of the exemption are stated in Section 2, quoted below: "Sec. 2. In pursuance of the above-declared policy any citizen of the Philippines, or any association or corporation organized under the laws of the Philippines, at least sixty per cent of the capital of which is owned by citizens of the Philippines, engaged or which shall engage exclusively in the overseas shipping business, and in the construction of modern boats for overseas service shall be exempt from the payment of income tax on income derived from his or its shipping business for a period of ten years from the date of approval of this Act, provided that all those who avail themselves of the loan assistance in this Act shall invest all net profits realized during that period in the construction, purchase, or acquisition of additional vessels and equipment and/or in the improvement of its vessels and equipment". LLjur Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue