Local Purchases of Construction Materials Needed/Required for the ADB New Headquarters Building Project are Exempt from Sales Tax

November 13, 1987 BIR RULING NO. 357-87 163 224-86 357-87 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 pursuant to the provisions of Section 6(a) of the Supplementary Agreement dated December 28, 1984 and par. 18 of the Memorandum of Understanding dated March 20, 1985 to the existing Headquarters Agreement between the Philippine Government and the ADB, as implemented by Ministry Order No. 1-86 dated February 20, 1986, 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. atdc In view of the foregoing, four local purchases of materials certified to by the Special Project Officer of the Bank under Certificate of Project Goods No. 7 dated May 7, 1987 (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 purchases 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. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner