BIR Ruling [UN-063-A-95]

February 14, 1995 BIR RULING [UN-063-A-95] Hon. Dominador G. Nazareno, Jr. House of Representatives Diliman, Quezon City S i r : This refers to your letter dated February 1, 1995, in behalf of Mr. John A. Stahley, an American national permanently residing in the Philippines, in effect, requesting a ruling on the taxability of one (1) unit 1995 Toyota Land Cruiser with an engine capacity of 4525cc . It appears that the said vehicle covered by B/L No. APLU006624087, with Registry Number APL-048 arrived in Manila last December 5, 1994 via vessel "President Arthur"; that all the required documents for the subject shipment, including Entry No. 178066-94, have already been filed and that the corresponding duties and taxes (obviously value-added tax) were paid; and that a gate pass for release of the shipment from Customs custody has already been issued but the release did not materialize as the same was intercepted and detained by the personnel of the office of the Customs Commissioner for alleged non-payment of Ad-Valorem tax prescribed under Section 149 of the National Internal Revenue Code, as amended. In reply, please be informed that since said imported vehicle exceeds the engine displacement limit covered by Department of Finance Order No. 34-93 implementing Executive Order No. 90, it is not taxable as an automobile; hence, not subject to Ad-Valorem tax under Section 149 of the Tax Code, as amended. However, the same is subject to the 10% Value-Added Tax (VAT) under Section 101(a) of the same Code. (BIR Ruling No. 149/000-00/116-94 dated July 11, 1994) cdi Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)