Tax Exemption on the Entry Into the Philippines of Corn Derivatives

April 12, 1960 BIR RULING NO. 157-60 The New Tanauan Subdivision Farmers Cooperative Association, Inc. Tanauan, Batangas Gentlemen : Reference is made to your letter of the 8th instant, requesting information whether or not, under the following circumstances, the entry into the Philippines of corn derivatives is subject to any tax: "THE NEW TANAUAN SUBDIVISION FARMERS COOPERATIVE ASSOCIATION, INC. is organized under Commonwealth Act No. 565 as amended and operating under Republic Act No. 2023 and its net assets is less than P500,000.00. It has been granted on April 1, 1960 an Export Permit No. 392 by the President of the Philippines, pursuant to the provisions of Republic Act No. 613 as amended by Republic Acts Nos. 824, 999, 1482 and 2240, and under such permit, it will send to Tokyo, Japan TEN THOUSAND (10,000) metric tons of Philippine native yellow flint corn for processing into corn derivatives. Afterwards these corn derivatives recovered from the corn sent to the Tokyo manufacturer will be shipped again to the New Tanauan Subdivision Farmers Association, Inc." In answer thereto, I have the honor to inform you that, if as represented, that corporation has been organized under Commonwealth Act No. 565, as amended, and is operating in accordance with Republic Act No. 2023, and its net assets are less than P500,000.00, the entry into the Philippines of said corn derivatives is exempt from the advance sales and compensating taxes, pursuant to section 66, in relations to section 4 of Republic Act No. 2023. cdta Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue