BIR Ruling No. 125-65

November 12, 1965 BIR RULING NO. 125-65 Mr. Sergio E. Donato Certified Public Accountant 1130 Perez Street, Paco M a n i l a S i r : Reference is made to your letter dated July 15, 1965 requesting information as to the kind of taxes payable by your client based on the following facts: cdi "1) Manufactures Mum, Arrid, Veto and other deodorants out of imported raw materials; "2) Imports Mum, Arrid, Veto, etc. for use as ingredients in the manufacture of (a) other toilet articles (b) other medicinal products; "3) Imports Mum, Arrid, Veto, etc. for resale locally; "4) May Mum, Arrid, Veto be classified as medicinal products instead of Deodorants or toilet articles?" In answer thereto, I have the honor to inform you as follows: The manufacture of the abovementioned body deodorants is subject to the fixed annual tax of P20.00 and to the 50% sales tax prescribed by Sections 182(A)(1) and 184(c), both of the Tax Code. The imported deodorants such as arrid, mum, and veto which will be used as ingredients in the manufacture of other toilet articles are also subject to 50% advance sales tax based on the total landed cost thereof plus 100% mark-up, pursuant to Section 183(b), in relation to Section 184(c), both of the said Code. cdtech Very truly yours, (SGD.) MISAEL P. VERA Acting Commissioner of Internal Revenue