10% Advance Sales Tax — Medicinal Ointment
BIR Ruling No. 113-81 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jul 22, 1981
Full text
July 22, 1981 BIR RULING NO. 113-81 199-a 035-81 113-81 Rova Pharmaceutical 1922 San Marcelino Street Malate, Metro Manila S i r : This refers to your letter dated April 2, 1981, requesting for a ruling as to the applicable rate of advance sales tax on your importation of Africana Medicated Cream or Liquid. The product has been certified by the Food and Drug Administration as a medicinal preparation on the basis of its chemical composition and is used as a treatment of alopecia, a remedy for scalp itching and for prevention of dandruff. The analysis of this Office shows that said product is a medicinal hair preparation. In reply, I have the honor to inform you that under the foregoing facts, Africana Medicated Cream or Liquid is not a cosmetic but a medicinal ointment. Accordingly, it is subject to the 10% advance sales tax based on landed cost thereof, plus 25% mark-up, pursuant to Section 193(b), in relation to Section 199, both of the Tax Code of 1977. Very truly yours, RUBEN B. ANCHETA Acting Commissioner
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