Non-inclusion of Dollar Fees from the Export Fees

April 1, 1981 BIR RULING NO. 064-81 24-00 000-00 064-81 Q.K. Calderon Construction Co., Inc. 3rd Floor, Calderon Building 827 E. de los Santos Avenue Quezon City Attention: Mr . Q . K . Calderon President Gentlemen : This refers to your letter dated November 26, 1980 requesting for opinion on whether you could include the dollar fees you derived as part of your export fees for purposes of the Export Incentives Law. You have represented that you are a service exporter in the field of engineering and construction, registered with the Board of Investments on December 22, 1977 with Certificate No. 77-40 in accordance with the provisions of the Export Incentives Act otherwise known as Republic Act No. 6135, as amended; and that you have at present construction contracts within the Philippines with a foreign government for which you are paid in U.S. dollars. In reply, please be informed that pursuant to Section 3(g) of R.A. No. 6135, "export fees shall mean the total foreign exchange which is charged or received by a registered service exporter for furnishing or performing services, . . ., outside of the Philippines . . . ." Since the aforestated construction contracts are performed within the Philippines , the dollar fees derived therefrom do not form part of the export fees entitled to the incentives granted under Section 10 of R.A. No. 6135, as amended. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner