BIR Ruling No. 157-82

April 28, 1982 BIR RULING NO. 157-82 196 (e) 000-00 157-82 The Geta Corporation Philippines, Inc. Reliance & Pioneer Streets Mandaluyong, Metro Manila P.O. Box 950, Manila Attention: Mr . Sergio L . Lalic Manager, Purchasing Department Gentlemen : This refers to your letters dated May 12 and June 16, 1980 requesting that your importation of laundry machine spare parts covered by Airway Bill No. 217-0884 5141 which will be used by the Philippine Foundation for Cultural and Educational Development on its washing machine, be subject to the 10% advance sales tax. You stated that since your shipment is not intended for commercial laundries but for the exclusive use of the Philippine Foundation for Cultural and Educational Development, the 10% tax should be applied instead of the 25% tax. In reply, please be informed that under Section 196(e) of the Tax Code of 1977, as amended, the term "washing machines of all types" embraces all kinds of washing machines, regardless of their use. Such being the case, the laundry machine parts imported by you for the use of the said Foundation are subject to the same tax rate applicable to washing machines, i.e. the 25% advance sales tax based on the landed cost thereof, plus 50% mark-up imposed by Section 196(e) in relation to Section 193(b), both of the Tax Code of 1977, as amended. cdtech Very truly yours, RUBEN B. ANCHETA Acting Commissioner