Tax Liability of a Manufacturer of Plastic Packaging Materials
BIR Ruling No. 109-87 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Apr 22, 1987
Full text
April 22, 1987 BIR RULING NO. 109-87 163 (2) 165-86 109-87 Gentlemen : In reply to your letter dated July 21, 1986, please be informed that being a manufacturer of plastic packaging materials namely bottles and caps for various industries, particularly pharmaceutical and food industry whose products are subject to 10% sales tax, your packaging materials which are exclusively used as parts and accessories of said products are also subject to the same rate of sales tax i.e. 10% provided that the purchaser of such raw materials shall certify to you that the articles shall be used exclusively in the preparation or manufacture of essential articles under Section 163(2) of the Tax Code as amended by Executive Order No. 36. If the purchaser fails to issue a certification, the plastic packaging materials shall be subject to 20% sales tax. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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