Whether the Importation of 5,000 Pieces of Gold Commemorative Coins Minted Abroad is Subject to Internal Revenue Tax or Duty

March 19, 1992 BIR RULING NO. 094-92 101 (a) 000-00 094-92 Honorable Jose L. Cuisia, Jr. Governor Central Bank of the Philippines Manila S i r : This refers to your letter dated February 3, 1992, in effect, requesting a ruling as to whether the importation of five thousand (5,000) pieces of gold commemorative coins minted abroad is subject to internal revenue tax or duty. It is represented that the Monetary Board, in its Resolution No. 677 dated June 14, 1991 approved the minting and issuance of five thousand (5,000) pieces gold commemorative coins to celebrate the occasion of the Sixth Anniversary of the incumbency of Her Excellency, President Corazon C. Aquino, and the People Power Revolution in February 1992; that the gold commemorative coin which is a legal tender with a face value of P10,000.00 and of proof quality, features the profile of the President on the obverse side and a design symbolic of the return of democracy in the Philippines on the reverse side; that the gold coins will be minted by an internationally recognized Mint principally to ensure the quality of the gold coins and their prompt delivery before February 1992; and that the gold commemorative coins are principally intended to be sold in the international numismatic market with only 2,000 available for sale in the Philippines. In reply, I have the honor to inform you that this office has taken note of the fact that the Central Bank is a grantee of tax exemption privilege on its importation of coins pursuant to Section 131 of R.A. 265, as amended by P.D. 72. However, in view of the general withdrawal of all tax exemption privileges from all government units, agencies, or instrumentalities, by P.D. Nos. 1177 and 1931 and Executive Order No. 93, and considering the fact that the importation of coins by the Central Bank is not one of the exempt transaction under Section 103 of the Tax Code, this Office is of the opinion as it hereby holds, that your importations of gold commemorative coins shall be subject to 10% VAT based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus customs duties, excise taxes, if any, and other charges, pursuant to Section 101 (a) of the Tax Code, as amended. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue