BIR Ruling No. 141-61

March 29, 1961 BIR RULING NO. 141-61 The Assistant Director Forest Products Research Institute College, Laguna S i r : Reference is made to your letter dated February 20, 1961 stating that you intend to buy a car (Ford V-8, 4-door sedan) which was brought into the Philippines sometime in 1951 or 1952 by a British doctor employed in the World Health Organization (Manila Office) free from taxes and duties; that before he left the country in 1954, he sold said car to an American employee of the PAO, United Nations; and that the latter, being a tax-exempt person like the doctor, also did not pay any tax or duty thereon. You now request information as to the charges and taxes that you would pay in the event that the sale materializes. cdt In answer thereto, I have the honor to inform you that, on the assumption that you will purchase the car for personal use and not for resale, the same is subject to the compensating tax at the rate of 50%, 75% or 100%, depending upon whether the total landed cost thereof does not exceed P7,000.00, or exceeds P7,000.00 but does not exceed P10,000.00, or exceeds the last mentioned amount. The total landed cost of an automobile is the cost thereof as determined in accordance with Department Order No. 289-A, plus all expenses incurred in connection with its importation until the same is released from customs custody. With respect to the matter of customs duties, it is suggested that the same be taken up with the Bureau of Customs, Manila. cdtech Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue