Purchase of a Locally Manufactured Car Free from Payment of Sales Tax

May 5, 1981 BIR RULING NO. 080-81 195-00 75-81 080-81 The French Embassy 3rd Floor, Filipinas Life Bldg. 6786 Ayala Avenue, Makati Metro Manila Attention: Mr . Philippe Royere Gentlemen : This refers to your letter, dated February 27, 1981, which was referred to this Office by the Ministry of Finance regarding your request to purchase tax-free locally assembled car within the framework of the Progressive Car Manufacturing Program (PCMP) for the official use of the Embassy. In reply, I have the honor to inform you of the ruling of the Minister of Finance of September 5, 1974 extending to foreign embassies, the privilege given to "Balikbayan" and persons coming for the first time to settle in the Philippines under P.D. No. 439 to purchase vehicles without the payment of taxes from participants in the Progressive Car Manufacturing Program (PCMP) subject to the following conditions: (1) that the purchased vehicle is brand new and registered under the Progressive Car Manufacturing Program; and (2) that the purchase should be made in U.S. or other acceptable foreign currencies; and (3) that the privilege shall be availed of only once during his/her assignment in the Philippines with a right of replacement not oftener than once every three years. cdtech Your request to purchase a locally manufactured car free from payment of sales tax is therefore granted provided all the requirements indicate in said ruling are complied with. Very truly yours, RUBEN B. ANCHETA Acting Commissioner