BIR Ruling No. 054-65

May 24, 1965 BIR RULING NO. 054-65 The Municipal Judge Calatagan, Batangas S i r : In answer to your letter dated December 16, 1964, I have the honor to inform you that a Sari-Sari Store owner who has paid his privilege tax (C-13) need not pay another privilege tax for the retail of lumber, hardware and gasoline provided that he maintains only a single establishment where business is conducted. The graduated fixed annual tax is based on the gross sales during the preceding calendar year. casia The sari-sari store owner under the representation is required to keep only a single set of books of accounts. Internal revenue taxes erroneously or illegally collected are refundable provided that the claim is made in writing and filed within two (2) years after the payment of the tax. A Filipino citizen who is presently employed in the United States is liable to pay his income tax in the Philippines, which payment could either be made by him or through his attorney-in-fact. However, he is allowed credit for income tax paid in the United States on income earned therein against Philippine income tax pursuant to Section 30(C)(3)(A) of the National Internal Revenue Code which is quoted hereunder for ready reference. "(3) Credits against tax for taxes of foreign countries. If the taxpayer signifies in his return his desire to have the benefits of this paragraph, the tax imposed by this Title shall be credited with "(A) Citizen and domestic corporation. In the case of a citizen of the Philippines and of a domestic corporation, the amount of any income, war profits, and excess-profits taxes paid or accrued during the taxable year to any foreign country." Before credit is allowed, he must signify in his return his desire to claim a credit for taxes and not as a deduction pursuant to Section 82 of Revenue Regulation No. 2 implementing the abovequoted provision of the Tax Code. For this purpose, salaries earned in U. S. dollars for services rendered abroad are convertible to Philippine peso at the current rate of exchange prevailing at the time the income was earned. aisadc Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue