ITAD Ruling No. 048-00

February 17, 2000 ITAD RULING NO. 048-00 249-89 United Nations Children's Fund (UNICEF) 6th Floor, NEDA sa Makati Building 106 Amorsolo St, Legaspi Village Makati City, Philippines Gentlemen : This refers to your letters dated November 10 and 12 1999 which were referred to this Office by the Department of Foreign Affairs requesting for the issuance of a tax exemption certificate on the purchase of seventeen (17) units of TOYOTA HI-LUX Double Cab Pick-Up. It is represented that the said transaction has prior importation approval from the Department of Foreign Affairs (DFA) in its letter no. 29958 dated October 8, 1999 but instead UNICEF decided to procure the aforementioned vehicles locally and tax free directly from Toyota Motors Philippines Corp. In reply, please be informed that the Article VI(A) of the Agreement between the UNICEF and the Government of the Philippines dated November 20, 1948 provides as follows: "The Fund, its assets, property, income and its operations and transactions, of whatsoever nature, shall be immune from all taxes, fees, tolls, or duties imposed by the Government or by any political sub-division thereof or by any other public authority in the Republic of the Philippines. The Fund shall also be immune from liability for the collection or payment of any tax, fee, toll, or duty imposed by the Government or any political sub-division thereof or by any other public authority." Moreover, under Article VII of the same Agreement, it is provided that the UNICEF and its personnel shall enjoy the privileges and immunities contained in the General Assembly of the United Nations dated February 13, 1946 to which the Philippines is a member. Such privileges and immunities also include the exemption from taxation. (Article II Section 7, Convention on the Privileges and Immunities of the United Nations) LexLib Such being the case, your request is hereby granted. The United Nations Childrens Fund (UNICEF) is entitled to tax exemption on its purchase of 17 units of TOYOTA HI-LUX Double Cab Pick-Up. (BIR Ruling No. 249-89 dated December 12, 1989) It is hereby understood that this exemption applies only on vehicles purchased under UNICEF's name. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner Legal and Enforcement Group