Request for Exemption from Compensating Tax on Items Received from Trinity Hill Assembly of God

May 8, 1986 BIR RULING NO. 055-86 169 048-84 055-86 Gentlemen : This refers to your letters dated April 16 and 24, 1986, requesting exemption from compensating tax on the following items received by you from Trinity Hill Assembly of God, 8498 Paseo Iglesia, Spring Valley, California, U.S.A., viz: 600 plastic bags of used clothing 280 packages of cookies 50 pkgs. pasta 10 cases of 2 onz. chip deep 1 box string beans can vegetable 20 pkgs. macaroni variety 2 cases of ketchup 20 boxes of cake mix 7 bottles of 12-onz. soy sauce 4 electric organs (used) which, as represented, are for distribution to the poor, that the shipment is covered by Bill of Lading No. LBML-51292 on board "N. Integrity V-8W", USA; and that the Church of the Foursquare Gospel in the Philippines is a religious organization. In reply thereto, please be informed that Section 169 (formerly Section 204) of the Tax Code as amended, enumerates the articles which are not subject to compensating tax and those imported and/or received from abroad by religious organizations like your organization are not included in the enumeration. Accordingly, the shipment to you of the above items is subject to the 20% compensating tax imposed under Section 169 in relation to Section 165 (A) (2) of the Tax Code, as amended by P.D. Nos. 1991 and 2031 except those of the string beans can vegetables and ketchup which are considered essential articles, and, therefore, subject to 10% compensating tax. Moreover, the imported electric organs shall be subject to 30% compensating tax. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner