Tax Exemption on a Carton of Religious Film

February 11, 1988 BIR RULING NO. 041-88 103 (u) 000-00 041-88 S i r : This refers to the request of your organization, Keys to Freedom Ministries, Inc. for tax exemption on one carton stc. 1 x 16 mm. 4414 ft. religious film covered by Air Waybill No. 7782 coming from the United Kingdom. It appears that the said film is a Colour Tagalog Version Print of the Life of Jesus; and that under the provisions of the UNESCO Florence Agreement the same is classified as "Films" under Annex C(1) thereof, as certified to by the Secretary-General, UNESCO Commission of the Philippines. In connection therewith, please be informed that pursuant to Section 103(u) of the Tax Code as amended by Executive Order No. 273 and implemented by Section 9(b)(16) of Revenue Regulations No. 5-87 dated September 1, 1987, transactions which are exempt under international agreements to which the Philippines is a signatory, are exempt from the value-added tax. Such being the case, the aforesaid imported film received by the Keys to Freedom Ministries, Inc. remains exempt from the 10% value-added tax. In other words, the exemption granted to your organization by virtue of the UNESCO Florence Agreement is not revoked by the Value-Added Tax (VAT) law. This serves as a certification authorizing you to secure the release from customs custody your aforesaid one carton stc. 1 x 16 mm. 4414 ft. religious film without payment of the 10% value-added tax. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner