Local Purchases of Materials for Construction of Asian Development Bank Headquarters Exempt from Sales Tax

October 21, 1986 BIR RULING NO. 224-86 163 000-00 024-86 Gentlemen : This refers to your local purchases of construction materials needed/required for the New Headquarters Building Project of the Asian Development Bank (ADB). It appears that under the Supplementary Agreement to the agreement between the Asian Development Bank and the Government of the Philippines regarding the Headquarters of the Asian Development Bank as ratified by the President of the Philippines on February 25, 1985 and the Memorandum of Understanding between the Government of the Philippines and the Asian Development Bank as ratified by the President of the Philippines on July 24, 1985 and as implemented by Ministry Order No. 1-86 of the Ministry of Finance, all local purchases made by the Bank or its contractor or sub-contractor, of supplies to be used in the Project are exempt from sales tax provided, that the Special Project Officer of the Bank issues a certificate concerning the use of such specific item purchased, the same to be furnished to the Ministry of Finance through PCC/ADB. In view of the foregoing, your local purchases of materials certified to by the Special Project Officer of the Bank under Certificate of Project Goods No. 1 dated July 9, 1986, (Local Purchase with Sales Tax Exemption), Certificate of Project Goods No. 2 dated July 22, 1986, (Local Purchase with Sales Tax Exemption) and Certificate of Project Goods No. 3 dated August 15, 1986, (Local purchase with Sales Tax Exemption) as needed for the construction of the Asian Development Bank Headquarters are exempt from sales tax. Moreover, subsequent local purchase of articles shall be exempt from the sales tax provided that they are covered by the above certificate issued by the Special Project Officer of ADB. cdti Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue