Refund or Tax Crediting of the Excise Tax Element on the Tax Paid Purchase of Cigarettes

September 15, 1988 BIR RULING NO. 442-88 127 (d) 000-87 442-88 Gentlemen : This refers to your letter dated May 18, 1988, in effect, requesting that since refund or tax crediting of the excise tax element on the taxpaid purchase of cigarettes which are actually exported is provided by law, you would like the B.I.R. to issue a tax credit certificate specifying that the same is assignable and transferable; and that it can be used as payment for taxes and customs duties. In reply, please be informed that pursuant to Section 127(d) of the Tax Code, as amended, when goods locally produced or manufactured are removed and actually exported without returning to the Philippines, whether so exported in their original state or as ingredients or parts of any manufactured goods or products, an excise tax paid thereon shall be credited or refunded upon submission of proof of actual exportation and receipt of the corresponding foreign exchange payment. Accordingly, you may purchase locally manufactured taxpaid cigarettes from any source and export the same; and upon submission of proof of exportation and receipt of the corresponding foreign exchange payment, this Office, upon your request will refund the excise tax element or issue a corresponding tax credit certificate which can be used in the payment of your other internal revenue tax liabilities. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner