Company or Corporation Engaged in a New and Necessary Industry

March 13, 1959 BIR RULING NO. 149-59 Mr. Antonio A. Veloso Certified Public Accountant P. O. Box 916, Manila S i r : In answer to your letter of the 25th ultimo, I have the honor to inform you as follows: prll Pursuant to Section 1 of Republic Act No. 901, a company or corporation engaged in a new and necessary industry is entitled to a diminishing exemption from all taxes directly payable by it in respect to said industry during the four years following December 31, 1958, as follows: YEAR Rate of Exemption 1959 90% 1960 75% 1961 50% 1962 10% Accordingly, the aforesaid company or corporation is liable for the payment of all taxes directly payable by it in respect to its industry, such as the basic and additional residence taxes (Class "A" & "B"), annual fixed tax (C-14), percentage and documentary stamp taxes, at the rates of 10%, 25% and 90% thereof during the years 1959, 1960, 1961 and 1962, respectively. With respect, however, to your query as to the amount of customs duties and other charges that should be included in computing the total landed cost of an article imported by a new and necessary industry for the purpose of determining the amount of advance sales tax payable thereon under Section 183(b) of the Tax Code, please be informed that the matter has, on even date, been referred to the Secretary of Finance for opinion. As soon as we receive said opinion, you will be informed accordingly. LLpr Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue