Taxability of the Donation of Medical Supplies and Equipment in Favor of Two Government Hospitals

August 13, 1992 BIR RULING NO. 224-92 101, 126 110-91 224-92 Hon. Gary B. Teves House of Representatives Quezon City S i r : This refers to your letter dated July 21, 1992 requesting exemption from the payment of internal revenue taxes on the donation by the World Relief Center of Detroit, Michigan of one (1) van containing assorted second hand medical supplies and equipment in favor of two (2) government hospitals in your congressional district, namely, the Bayawan and Siaton District Hospitals. It is represented that the said van (Container N.O. 2CSU2401722; Serial N.O. 534951) is scheduled to arrive in Cebu City on July 24, 1992 on board the vessel "Zim Livorno" and covered by Bill of Lading No. ZIMUDET119. In reply, please be informed that your request cannot be granted for lack of legal basis. The aforementioned donation is subject to the 10% VAT based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus excise tax, if any, and other charges, such tax to be paid by the importer prior to the release of such medical supplies and equipment from customs custody pursuant to Section 101(a) of the Tax Code, as amended by E.O. No. 273. cdpr Very truly yours, JOSE U. ONG Commissioner of Internal Revenue