Guidelines on Pre-payment of Internal Revenue Taxes by Tramp Vessels

May 17, 1990 BIR RULING NO. 087-90 49 (a) 000-00 087-90 S i r : In reply to your letter dated March 5, 1990, please be informed that Revenue Memorandum Order No. 21-78 dated August 14, 1978 which sets the guidelines regarding pre-payment of internal revenue taxes by tramp vessels before departure or filing of a sufficient bond to answer for the taxes due is still being enforced by this Bureau. It is noted that said Revenue Memorandum Order implements par. 3 of then Section 51(a)(1) of the National Internal Revenue Code of 1977 which is now found in Section 49(a)(1) of the Tax Code, as amended by Executive Order No. 273, quoted as follows: aisadc "Sec. 49. Payment and assessment of income tax for individuals and corporations. "(a) Payment of Tax . (1) In general . . . . In the case of tramp vessels, the shipping agents and/or the husbanding agents, and in their absence, the captains; thereof are required to file the return herein provided and pay the tax due thereon before their departure. Upon failure of the said agents or captains to file the return and pay the tax, the Bureau of Customs is hereby authorized to hold the vessel and prevent its departure until proof of payment of the tax is presented or a sufficient bond is filed to answer for the tax due." It is of course understood that Guideline No. 2 of said Revenue Memorandum Order is already modified in the sense that instead of 2%, the rate of tax on common carriers is now 3% while the rate of interest on income tax is no longer 14% but 20%. cd Very truly yours, (SGD.) JOSE U. ONG Commissioner