Tax Imposed on the Importation of Machineries
BIR Ruling No. 131-81 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jul 29, 1981
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July 29, 1981 BIR RULING NO. 131-81 204-00 000-00 131-81 Asian Polymers Industries Corp. 308 Mabolo Street, Malabon Metro Manila Attention: Mr . Hao Han Cheong Executive Vice-President Gentlemen : This refers to your letter dated November 24, 1980 requesting exemption from the payment of 25% mark-up on the importation of machineries consisting of 39 cases, 1 unit Barmag rebuilt and upgraded synthetic flat yarn production line. In reply, please be informed that since the abovementioned importation is not intended for resale or barter, the same is subject only to the 10% compensating tax prescribed in Section 204 of the Tax Code of 1977, as amended, in relation to Section 199 of the same Code. This means that the tax shall be based on the landed cost without any mark-up. However, in case the imported articles are sold, bartered or exchanged, the same shall be subject to the 10% advance sales tax based on the landed cost plus 25% mark-up, pursuant to Section 193(b) of the Tax Code. cdtech Very truly yours, RUBEN B. ANCHETA Acting Commissioner
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