BIR Ruling No. 053-82

March 4, 1982 BIR RULING NO. 053-82 199-00 117-81 053-82 Australian Embassy P.O. Box 1274 MCC Makati, Metro Manila Attention: Mr . Kerrie Walligan Attache (Administrator) Gentlemen : This refers to your letter dated May 28, 1981 requesting information as to whether or not the Australian Embassy is exempt from the payment of the 10% sales tax due on manufactured products purchased. cdtech It is represented that the Embassy has engaged C.C. Tan Manufacturing to supply and install water tanks, booster pumps and pressure tanks in the ten (10) embassy residences occupied by Australian-based officers; and that in the sales invoice issued, the 10% sales tax was included. In reply, I have the honor to inform you that under Article 34 of the Vienna Convention on Diplomatic Relations adopted on April 18, 1961, diplomatic agents shall be exempt from all dues and taxes, personal or real, national, regional or municipal, except : (a) indirect taxes of a kind which are normally incorporated in the price of goods or services; (b) dues and taxes on private immovable property situated in the territory of the receiving state, unless he holds it on behalf of the sending state for the purpose of the mission; (c) estate, succession on inheritance duties levied by the receiving state, subject to the provisions of paragraph 4 of Article 39; (d) dues and taxes on private income having its source in the receiving state and capital taxes on investments made in commercial undertakings in the receiving State; (e) charges levied for specific services rendered; (f) registration, court or record fees, mortgage dues and stamp duty, with respect to immovable property, subject to the provisions of Article 23. It is clear from the foregoing that the tax exemptions of diplomatic representatives do not include exemption from the indirect taxes such as the 10% sales tax falling under paragraph (a) above. It is therefore regretted that no exemption from the payment of the said 10% tax prescribed by Section 199 of the Tax Code, as amended, can be extended to the diplomatic representatives of your Embassy. Very truly yours, RUBEN B. ANCHETA Acting Commissioner