Clarification of EO No. 93 Affecting Exemption from Percentage Taxes

July 21, 1988 BIR RULING NO. 348-88 101 (a) 102 (a) 000-00 348-88 Gentlemen : This refers to your letter dated May 24, 1988 requesting clarification of Executive Order No. 93 insofar as it affects your exemption from the percentage taxes. You stated that the tax and duty exemption privilege of MARINA-registered firms under P.D. No. 666 were withdrawn by P.D. No. 1955 but on January 3, 1986, the same were restored by FIRB Resolution No. 3-86 and circularized by MARINA Circular No. 32 which you have consistently followed. In reply, please be informed that your tax incentive which has been restored by FIRB Resolution No. 3-86 has been withdrawn by Executive Order No. 93 which became effective on March 10, 1987. Such being the case, you are subject to the compensating tax on your importation of machinery, equipment, and materials for ship building, ship repair and/or alteration as well as replacement and spare parts for the repair and overhaul for vessels and to the contractor's tax on your gross receipts for ship building and ship repairing activities beginning March 10, 1987, up to December 31, 1987. However, starting January 1, 1988, you are subject to the 10% value-added tax both on your importation of machinery, equipment and materials for ship building and ship repairing activities pursuant to Sections 101(a) and 102(a) both of the Tax Code as amended by Executive Order No. 273. cdti Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner