BIR Ruling No. 164-12

March 9, 2012 BIR RULING NO. 164-12 Section 5 Paragraph j of Republic Act No. 9510; 000-00 Credit Information Corporation c/o Endriga, Manangu & Associates Unit 1010, Annapolis Wilshire Plaza Building 11 Annapolis Street, Greenhills, San Juan City Attention: Mr. Baltazar N. Endriga President Gentlemen : This refers to your letter dated December 19, 2011 requesting for a ruling confirming the tax exemption of Credit Information Corporation (CIC) in acquiring two motor vehicles from a local distributor. It is represented that CIC is a government owned and controlled corporation created pursuant to Republic Act No. 9510, "An Act Establishing the Credit Information System, and for Other Purposes". Section 5 Paragraph j of Republic Act No. 9510 provides the exemption of CIC from taxes and duties, to wit: " The provision of any general or special law to the contrary notwithstanding, the importation by the Corporation of all equipment, hardware or software, as well as all other equipment needed for its operations shall be fully exempt from all customs duties and from all other taxes, assessments and charges related to such importation. " (Emphasis supplied) cDSAEI In reply, please be informed that it is explicitly provided for in the above quoted provision of Republic Act No. 9510 that the exemption of CIC from all customs duties and from all other taxes, assessments and charges is limited to its (CIC) importation of equipment, hardware or software, as well other equipment. The said law further qualifies that the importation must be needed for its (CIC) operation. The transaction involved in the present request for confirmatory ruling is the purchase of two (2) motor vehicles from a local distributor; hence it is clearly outside the tax exemption provision of Republic Act No. 9510. In view of the foregoing, this Office hereby denies your request for lack of legal basis. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue