Exemption from the (10%) Overseas Communications Tax

April 7, 1989 BIR RULING NO. 063-89 118 (b) 189-81 063-89 Gentlemen : This refers to your letter dated July 11, 1988, in effect requesting exemption from the ten per cent (10%) overseas communications tax on your outgoing telecommunication services under Section 118(b) of the Tax Code, as amended. In reply, please be informed that Section 118(b) [formerly 290-A (b)(i)] of the Tax Code, as amended, states that the 10% overseas communications tax shall not apply among others, to the Government of the Republic of the Philippines or any of its political subdivisions or instrumentality. You fall under this category since you are owned, controlled and managed by the Philippine Government (BIR Ruling No. 189-81). Accordingly, you are exempt from the 10% overseas communications tax. cdtech Very truly yours, (SGD.) JOSE U. ONG Commissioner