Exemption of UNICEF from the 10% Overseas Communications Tax

December 12, 1989 BIR RULING NO. 249-89 118 (a) 000-00 249-89 M a d a m : This refers to your letter dated June 20, 1989 requesting exemption of the United Nations Children's Fund (UNICEF) from the 10% overseas communications tax originating from the Philippines imposed under Section 118(a) of the Tax Code, as amended. cdtech In reply, please be informed that your request is hereby granted. Under Section 118(b)(iii) of the Tax Code, as amended, the aforesaid tax shall not apply to amounts paid for messages transmitted by a public international organization or any of its agencies in the Philippines enjoying privileges, exemptions and immunities which the Government of the Philippines is committed to recognize pursuant to an international agreement. In the case of UNICEF, the same falls within the said exemption since it is a creation of the General Assembly of the United Nations to which the Philippines is a member; that UNICEF, its assets, property, income and its operations and transaction shall be immune from all taxes imposed by the Philippine Government; and that the Philippine Government will grant to UNICEF and its personnel the privileges and immunities contained in the general convention on privilege and immunities adapted by the General Assembly of the United Nations on 13 February 1946. (See Whereas Clause, Articles VI and VII of the Agreement between UNICEF and the Philippine government effective on November 20, 1948) It is hereby understood that this exemption shall apply only to telephones installed by PLDT under UNICEF's name. cd Very truly yours, (SGD.) JOSE U. ONG Commissioner