Importations of Organizations Not Among Those Exempt under Section 204 of the Tax Code of 1977 Subject to 10% Compensating Tax

July 3, 1981 BIR RULING NO. 103-81 204-00 141-79 103-81 Immaculate Conception Parish Catholic Rectory Don Bosco Community Santa Cruz, Laguna Attention: Fr . Dominic Curto, S . D . B . Parish Priest Gentlemen : This refers to your letter dated June 1, 1981 requesting that your shipment of electric machinery which was donated from abroad to play bells in your parish, be exempted from the payment of compensating tax. In reply, I regret to inform you that your request cannot be granted for lack of legal basis. Pursuant to Section 204 of the Tax Code of 1977, as amended, your organization is not among those exempt from the payment of compensating tax. Consequently, your importation of the above-mentioned article is subject to the 10% compensating tax prescribed in Section 204 of the Tax Code of 1977, as amended, in relation to Section 199 of the same Code. However, if the said importation will be sold, bartered or exchanged, the same will be subject to the advance sales tax. Very truly yours, RUBEN B. ANCHETA Acting Commissioner