Tax-free Article Brought or Imported Into the Philippines

April 28, 1959 BIR RULING NO. 216-59 The Philippines Free Press Free Press Building 708 Rizal Ave., Manila Attention : Information Department S i r : In reply to your letter dated April 8, 1959, bearing on the query of Mrs. Tusay Dungca, inclosed, I have the honor to inform you that where a tax-free article brought or imported into the Philippines by a person exempt from tax is subsequently transferred in the Philippines to a non-exempt private person as a gift, the transferee is considered an importer thereof, liable to the corresponding tax, pursuant to section 183(b) of the Tax Code. If the scooter, subject to the query, is given under the circumstances described above and is intended for the personal use of the transferee, the compensating tax of 7% is due and payable, the same to be based on the import invoice value thereof plus the corresponding special import tax and customs duties. If it is intended for sale by the transferee, he is liable to the 7% advance sales tax, with the same basis, plus 25% thereof as mark-up. LLphil Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue