BOI-registered Importer of Raw Materials Exempt from Payment of Advance Sales Tax

July 31, 1986 BIR RULING NO. 135-86 166 (b) 13-85 35-86 Gentlemen : This refers to your letter dated June 5, 1986, stating that you are registered with the Board of Investments (BOI) under the provisions of Republic Act No. 5186 and as such enjoys tax exemption privileges (except income tax) under Section 8(1) thereof; and that these exemption privileges were extended by the Board of Investments on October 22, 1985 as follows: "100% January 1, 1982 to December 31, 1983 75% January 1, 1984 to December 31, 1986 50% January 1, 1987 to December 31, 1988 20% January 1, 1989 to December 31, 1990 10% January 1, 1991 to September 6, 1992" Based on the foregoing representation, you now request information as to whether you are exempt from the payment of advance sales tax on your importation of raw materials. In reply, please be informed that you are exempt from the payment of advance sales tax on your importation of raw materials to the extent of the foregoing percentages as approved by the Board of Investments. Moreover, the advance sales tax otherwise due on the raw materials imported by you (e.g. 75% advance sales tax for 1984 to 1986) can be credited against the sales tax due on your finished product. (BIR Ruling No. 013-85 dated February 1, 1985) However, the above importation is subject to the payment of the 5% internal revenue tax pursuant to Section 1 of P.D. No. 1352, as amended by P.D. No. 1395. cdta Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner