Certificate of [tax] Clearance

September 19, 1960 BIR RULING NO. 396-60 Mr. Delfin Lorille NAVCOMMFAC-535 F. P. O. San Francisco, California San Miguel, Zambales S i r : This is with reference to your letter of even date requesting a "certificate of [tax] clearance" from this Office stating that your car imported from abroad is free from internal revenue taxes. aisadc It appears that you are an American citizen and presently a member of the United States Navy, stationed in NavCommFac Phil. Navy-535, San Miguel Zambales, Philippines; that sometime on March 23, 1960 you imported into the Philippines and released by the Bureau of Customs the following: "One (1) CHEVROLET HARDTOP SEDAN w/ accessories, two-tone paint, model, 1960-1939, Impala Order No. XCO-166435; Four-sedan, Body color; Two-tone paint; white/turq.; white side wall tires (4) 7.50X 14 4-ply white side wall. Net extra: Manual radio; oilbath Air Cleaner; Oil Filter"; that said car is strictly for personal use; that a special license plate was issued by the Motor Vehicle's Office upon payment of the required registration fee; that you are due for retirement from the United States Navy on October 1, 1960. You now request this Office for a certificate of tax clearance for your car to be presented to the proper authorities concerned when you turn over the special license plate and the issuance of an ordinary plate as American civilian by the MVO. Under the foregoing facts as presented, please be informed "that United States military and civilian personnel in the Philippines who own motor vehicles brought or imported by them into the Philippines tax free do not become liable to any internal revenue tax on said vehicle by reason of their retirement. Such being the case, they can have their vehicles re-registered with the Motor Vehicles Office without the necessity of presenting any proof evidencing prior payment of the compensating or sales tax. As in the case of the original registration, the registration certificate to be issued by the Motor Vehicles Office covering the re-registration in this case shall contain a notation stamped in bold letters on the face thereof reading as follows: SUBJECT TO TAX WHEN SOLD TO NON-EXEMPT PURCHASER." (BIR Ruling No. 218, S. of 1959.) Accordingly, you are exempt from presenting any proof of prior payment of the compensating and sales tax to the authorities concerned upon the return of the special license plate and the subsequent issuance of an ordinary plate for your car upon retirement. This will serve as certificate of tax clearance of your car for registration purposes with the Motor Vehicles Office. aisadc Very truly yours, MISAEL P. VERA Deputy Commissioner of Internal Revenue