Computation of the Ad valorem Tax or Royalty
BIR Ruling No. 469-60 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Oct 25, 1960
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October 25, 1960 BIR RULING NO. 469-60 Marsman & Co., Inc. P.O. Box 297 Attention : Atty . Rosauro Davao Legal Department Gentlemen : In reply to your query dated October 15, 1960, I have the honor to inform you that the ad valorem tax or royalty is computed on the actual market value of the mineral removed from the mine site without any deduction for mining, milling, refining, transporting, handling, marketing, or any other expenses. However, in case the minerals are sold or consigned abroad under the C.I.F. terms, the cost of freight and insurance is deductible. At present the actual market value of the minerals sold abroad is the total amount received by you in pesos, after the cost in dollars has been converted at the rates authorized by the Central Bank minus the cost of insurance and freight computed also at the authorized conversion rate. cdll Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue
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