Tax Exemption on the Purchases Made by the AFP

April 22, 1958 BIR RULING NO. 247-58 C. C. Unson Company, Inc. 1226 Espaa, Manila Gentlemen : In reply to your letter dated April 12, 1958, I have the honor to inform you that pursuant to the provisions of Republic Act No. 1600, purchases made by the Armed Forces of the Philippines exclusively for military purposes are exempt from taxes. Accordingly, no tax need be paid on the materials to be imported by it, whether said importation be directly made by it or thru third persons, provided said materials are to be destined exclusively for military purposes. However, persons importing articles under contract for the exclusive use of the Armed Forces of the Philippines are exempt from sales tax pursuant to Section 188(e) of the Tax Code, as amended. The exemption includes the sales tax. However, all purchases by the Armed Forces from local manufacturers should be covered by tax exemption certificates which shall be kept by the seller as part of his records. prll Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue