Essential Requirements in Determining Income tax Liabilities of Foreign Shipping Companies

February 14, 1958 BIR RULING NO. 098-58 Messrs. Ross, Selph, Carrascoso & Janda Attorneys-at-Law Ayala Building, Manila Gentlemen : Reference is made to your letters dated January 29 and February 5, 1958, requesting clarification of the requirements essential to the application of Section 163 of the Revenue Regulations No. 2 in the determination of income tax liabilities of foreign shipping companies whose vessels call on Philippine Ports. LLjur In reply thereto, I have the honor to inform you that our requirement that every foreign shipping company with ships touching Philippine ports should register with this Office pursuant to Section 203 of the Tax Code, stating also the name and address of its agents in this country, may be compiled with by its duly licensed ship agents in the Philippines. Accordingly, the names of the foreign shipping companies as well as their vessels calling on Philippine ports should be registered with this Office under Section 203 by the ship's agents concerned. You like wise requested clarification of the second requirement which is as follows: "Foreign steamship companies should file statements of world operations duly certified by the tax authorities of their respective government, or if the same are not available, financial statements certified by independent certified public accountants. In both cases, the statement must be authenticated by Philippine Consular or Foreign Affairs officials. In the absence thereof, only verified Philippine deductions should be allowed." In this connection, please be informed that the authentication of the required financial statements by the U.S. Consulate may be accepted by this office when there are no Philippine Consular or other Foreign Affairs officials where such corporations are domiciled. cdtech Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue