Exemption from the 10% Overseas Communication Tax

September 30, 1981 BIR RULING NO. 189-81 290-A 000-00 189-81 Philippine Air Lines, Inc. P.O. Box 954 M a n i l a Attention: Mr . Miguel J . dela Rosa Gentlemen : This refers to your letter dated June 27, 1979 requesting exemption from the ten per cent overseas communications tax on your outgoing telecommunication services prescribed by Section 290-A of the Tax Code, as amended. In reply, please be informed that Section 290-a(b) of the Tax Code, as amended, states that the 10% overseas communication tax shall not apply, among others, to the Government of the Republic of the Philippines or any of its political subdivisions or instrumentality. You fall under this category since you are now owned, controlled and managed by the Philippine Government. Accordingly, you are exempt from the 10% overseas communications tax. Very truly yours, RUBEN B. ANCHETA Acting Commissioner