Sale of Petroleum Products to International Carriers, When Exempt from Excise Tax

June 14, 1991 BIR RULING NO. 103-91 132-00 000-00 103-91 Gentlemen : This refers to your letter to the Secretary of Foreign Affairs dated December 20, 1990 which was referred to this Office by facsimile message, in effect, requesting a confirmatory ruling to the effect that your sale of petroleum products of the Royal Jordanian Airlines, which ferried stranded Filipinos in Iraq and Kuwait, are exempt from excise tax. cdta In reply, please be informed that under Section 132 of the Tax Code, reading "SEC. 132. Petroleum Products Sold to Foreign International Carriers . Petroleum products sold to an international carrier for its use or consumption outside of the Philippines shall not be subject to excise taxes, Provided: That the country of said carrier exempts from similar petroleum products sold to Philippine carriers." It is observed in the aforesaid provision that the sale of petroleum products to international carriers will be exempt from excise tax only provided that the country of said carrier exempts from similar taxes petroleum products sold to Philippine carriers. In the instant case, since there appears to be no proof indicating that the purchase of the Philippine carriers in Jordan are exempt from taxes similar to excise tax, your sale of petroleum products to Jordan Airlines is not exempt from excise tax. Very truly yours, (SGD.) JOSE U. ONG Commissioner