Bureau of Local Government Finance Opinion

August 26, 1993 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. Rolando R. Abratique Senior Manager Republic-Asahi Glass Corporation Pasig, Metro Manila S i r : This refers to your letter dated July 23, 1993 requesting our views as regards tax situs. It is represented that Republic-Asahi Glass Corp. (RAGC) has its factory, principal and sales offices all located in Pasig. All sales made therein are all properly recorded in Pasig and the business tax due is paid to the same municipality. casia It is further represented that RAGC has additional ten (10) provincial depots where its products are stored for sale. One of the basic functions of these depots is to accept orders from dealers in their areas. The depots are located in the following cities and municipalities: 1 Calasio, Pangasinan 6 Iloilo City 2 Laoag City 7 Davao City 3 Cauayan, Isabela 8 Zamboanga City 4 Naga City 9 Cagayan de Oro City 5 Cebu City 10 General Santos City In this connection, please be informed that the provisions of Section 150 of the Local Government Code of 1991 are implemented by Article 243 of the Implementing Rules and Regulations (IRR). Under subparagraph (3) of said Article 243, a "warehouse" is defined as: "A building utilized for the storage of products for sale and from which goods or merchandise are withdrawn for delivery to customers or dealers, or by persons acting in behalf of the business." It appears, therefore, that the "depots" referred to may be considered as "warehouses" as contemplated in the Code. cdt Hence, all the sales made by the factory, principal office and/or sales offices in Pasig should be recorded therein and the tax due shall accrue and be paid to the municipality of Pasig. In this connection, please be informed further that under Art. 243 (b)(1) of the IRR, "All sales made in a locality where there is a branch or sales office or warehouse shall be recorded in said branch or sales office or warehouse and the tax shall be payable to the city or municipality where the same is located." In the light of the foregoing, this Department expresses the view that if the said depots of that corporation accept orders and/or issue sales invoices such orders and/or sales should be recorded in the said depot and the tax shall accrue and be paid to the city or municipality where the depot that made the sales is located. The Municipal Treasurer of Pasig in a separate letter of even date is furnished a copy of this communications for his guidance. We hope this clarifies matters. Very truly yours, By Authority of the Secretary: (SGD.) JUANITA D. AMATONG Undersecretary