BIR Ruling No. 136-61

March 28, 1961 BIR RULING NO. 136-61 Mr. Eugene L. Chua 537 4th Avenue, Grace Park Caloocan, Rizal S i r : Hereunder are the answers to the queries which you have requested this Office to furnish you in your letter dated January 2, 1961. cdpr Query No. 1. Are educational materials in the form of kits of Radio or TV Receiver parts, sent by correspondence schools in the United States, to students residing in the Philippines, subject to the payment of duty and/or taxes? (Assume that the kits of parts arrive one at a time through the Mails and each kit of parts does not exceed P15.00 in value including postage.) Answer The radio and TV receiver parts sent by correspondence schools in the United States to students residing in the Philippines are subject to the 7% and 30% compensating tax, respectively. Query No. 2 Upon completion of the correspondence course on Radio-TV-Electronics, the student will receive a TV picture tube. The student is given the choice of choosing either a 17" picture tube (valued at $40.00 including shipping charges) or a 21" picture tube (valued at $62.00 including shipping charges). Is this item subject to the payment of duty and/or taxes? If the answer is in the affirmative, kindly enumerate the various duty and/or taxes to be paid by the student. Answer. The TV picture tube (17" picture tube or the 21" picture tube whichever is the student's choice) is subject to the 30% compensating tax. prcd Query No. 3. Are gift's sent to Philippine residents by relatives living abroad subject to the payment of duty and/or taxes? Specifically, consider the following gifts: a. A simple Volt-Ohm-Millimeter (electronic test instrument) value at about 24 dollars including postage. b. A high quality Tube and Transistor Tester valued at about $200.00 plus postage. Answer. Gifts sent to residents of the Philippines by relatives living abroad are subject to the payment of compensating tax irrespective of the value thereof. a. A simple Volt-Ohm-Millimeter (electronic test instrument) valued at about 24 dollars including postage. b. A high-quality Tube and Transistor Tester valued at about $200.00 plus postage. Answer. Gifts sent to residents of the Philippines by relatives living abroad are subject to the payment of compensating tax irrespective of the value thereof. a. The simple Volt-Ohm-Millimeter (electronic test instrument) is subject to 7% tax. b. The high-quality tube and transistor tester is also subject to 7% tax. Regarding payment of customs duties and the peso to dollar exchange rate used by the customs examiners in computing taxes on imported articles, please direct your query to the Bureau of Customs. LexLib Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue