Microreel and CD-ROM Patent Collections Being Donated by the U.S. Patent and Trademarks Office, Japan Patent Office and European Patent Office Exempt from Donor's Tax

August 26, 1997 BIR RULING NO. 095-97 94 (b) (1) 45-97 095-97 Bureau of Patents, Trademarks and Technology Transfer Trade and Industry Bldg. 361 Sen. Gil J. Puyat Ave. Makati City Attention: Director Emma C . Francisco Gentlemen : This refers to your letter dated June 26, 1997 requesting for exemption from donor's tax on the microreel and CD-ROM patent collections presumably donated to you by the different patents offices abroad. LLjur It is represented that the Bureau of Patents, Trademarks and Technology Transfer (BPTTT) under the Department of Trade and Industry (DTI) regularly receives microreel and CD-ROM patent collections from U.S. Patents and Trademarks Office, Japan Patent Office, and European Patent Office since 1983; that the said patent collections are vital search tools to your Patent Examiners in the determination of the patentability of invention, utility model and industrial design applications; and that lately, however, you could not get said documents unless you pay the taxes thereon. In reply, please be informed that the microreel and CD-ROM patent collections presumably being donated to you by the U.S. Patent and Trademarks Office, Japan Patent Office and European Patent Office shall be exempt from the donor's tax as provided for under Sec. 94(b)(1) of the Tax Code, as amended, viz: "SEC. 94. Exemption of certain gifts. xxx xxx xxx "(b) In the case of gifts made by a non-resident not a citizen of the Philippines; (1) Gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government." This ruling is being issued on the presumption that the subject patent collections are being donated to you by the different patent offices abroad. However, if upon investigation, it will be disclosed that the same are not really donations, this ruling shall then be considered null and void. cdt Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue