Exemption from the Documentary Stamp Tax — Checks Printed by Central Bank

April 8, 1981 BIR RULING NO. 071-81 228-00 000-62 071-81 Philippine Airlines Philippine Airlines Building Legaspi Street, Makati Attention: Atty . Ricardo V . Puno, Jr . Vice-President & General Counsel Gentlemen : This refers to your letter dated October 3, 1980 requesting confirmation of your opinion that under your franchise, you are exempt from the documentary stamp tax on all your checks printed by the Security Printing Plant of the Central Bank. Section 13 of your franchise (R.A. No. 4271, as amended by P.D. No. 1294) provides as follows: "Sec. 13. In consideration of the franchise and rights hereby granted, the Grantee shall be taxable as provided under subsections (a) or (b) hereunder whichever will result in a lower tax: (a) A tax payable quarterly of 2% on gross revenues of the grantee from domestic operations plus its gross revenues derived from its outgoing freight passenger operations; or (b) The basic corporate income tax based on the grantee's worldwide income as provided under Section 24(a) of the National Internal Revenue Code, it being understood that the corporate development tax as imposed by P.D. No. 1158-A shall not apply to the grantee. cdtech n Note from the Publisher: Missing pages in the official copy obtained from the Bureau of Internal Revenue.