Dela Cruz, Nepomuceno & Associates

May 24, 2018 ITAD BIR RULING NO. 071-18 Sections 62 & 63, Vienna Convention on Consular Relations Dela Cruz, Nepomuceno & Associates Suite 820, 8th Floor Ortigas Building Ortigas Avenue, Pasig City 1605 Attention: AAA __________ Gentlemen : This refers to your letter dated 9 March 2018, on behalf of your client, BBB, __________ of the Republic of El Salvador to the Philippines, requesting for the issuance of a Certificate of Tax Exemption. In reply, please be informed of the pertinent provisions of the Vienna Convention on Consular Relations (VCCR) in connection with the tax privileges accorded to honorary consular officers, to wit: HTcADC "CHAPTER III REGIME RELATING TO HONORARY CONSULAR OFFICERS AND CONSULAR POSTS HEADED BY SUCH OFFICERS Article 62 Exemption from customs duties The receiving State shall, in accordance with such laws and regulations as it may adopt, permit entry of, and grant exemption from all customs duties, taxes , and related charges other than charges for storage, cartage and similar services on the following articles, provided that they are for the official use of a consular post headed by an honorary consular officer: coats-of-arms, flags, signboards, seals and stamps, books, official printed matter, office furniture, office equipment and similar articles supplied by or at the instance of the sending State to the consular post . xxx xxx xxx Article 66 Exemption from taxation An honorary consular officer shall be exempt from all dues and taxes on the remuneration and emoluments which he receives from the sending State in respect of the exercise of consular functions. xxx xxx xxx (Underscoring and italics ours) Based on the foregoing, exemption from tax on importation of articles may be accorded to honorary consuls provided that the articles are for the official use of the consular post of which the honorary consul is the head. Likewise, the remuneration and emoluments received by an honorary consul from the sending State in respect of consular functions are also exempt from tax. This Office shares the same opinion with the Department of Foreign Affairs, Office of Protocol, that honorary consuls enjoy limited tax privileges and immunities. They are accorded neither full diplomatic privileges nor full tax immunities, pursuant to the VCCR. In view thereof, apart from 'tax on importation of articles for official use in her consular post here in the Philippines,' and 'tax on the remuneration and emoluments she receives from El Salvador as honorary consul,' the requested tax exemption for __________ BBB, a Filipino permanently residing in the Philippines, cannot be granted for lack of legal basis. Very truly yours, (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue