Tax Liability on the Export and Import Business and on Buying and Selling of Animals, Copra, Lumber and Other Wares

October 28, 1959 BIR RULING NO. 583-59 Ray Higgins Trading Co., Inc. Suite 612 Shurdut Building M a n i l a Gentlemen : In reply to your letter dated September 15, 1959, relative to your query as to the taxes to which you shall be liable on your export and import business and on buying and selling of animals, copra, lumber and other wares, I have the honor to inform you that as an importer you shall pay (1) an annual fixed tax of P20.00 and (2) the advance sales tax prescribed by sections 184, 185 and 186 of the National Internal Revenue Code, depending on whether the article imported is a luxury item, semi-luxury or ordinary, based on the total landed cost thereof, plus the corresponding mark-up prescribed under Republic Act No. 594. On your business of buying and selling animals, copra, lumber and other wares, you shall pay the graduated annual fixed tax prescribed by section 182 of the Tax Code, based on your gross annual sales for the preceding calendar year. However, the initial fixed tax to be paid on this kind of business first begun shall be P10.00. For buying monkeys locally and exporting them to the United States under F.O.B. Manila Shipping terms, you will have to pay the graduated annual fixed tax mentioned above. There is no percentage tax on exports but as usual you will have to include the income derived therefrom in your yearly taxable income. cdtech Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue