Tax Exemption Privilege Granted by PD Nos. 1931 and 1955

March 25, 1988 BIR RULING NO. 119-88 103 (u) 000-00 119-88 Gentlemen : This refers to your letter dated February 1, 1988 stating that you are a government-owned corporation presently managed by the Asset Privatization Trust in accordance with Proclamation No. 50; and that pursuant to P.D. No. 1887, you, as the operator of Nonoc Mines, under a Memorandum of Agreement and Operating Contract entered into by and between you and the Republic of the Philippines, are exempt from all taxes, duties, fees and charges, both national and local until December 31, 1988. You now request for ruling whether you are exempt from value-added tax. In reply, please be informed that your tax exemption privilege has not been withdrawn by Presidential Decree Nos. 1931 and 1955 as indicated in the letter of the Acting Minister of Finance dated November 13, 1984. Moreover, your tax exemption privilege under the said operating agreement is a contract protected by the non-impairment clause of the Constitution; hence, the same is not withdrawn by Executive Order No. 93 which took effect on March 10, 1987. Such being the case, you are exempt from the value-added tax until December 31, 1988, pursuant to Section 103(u) of the Tax Code, as amended by Executive Order No. 273. cdti Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner