Prescribing a Uniform Exchange Rate for U.S. Dollars and Other Foreign Currencies to Philippine pesos for Internal Revenue Tax Purposes for the Calendar Year 1981

January 7, 1981 REVENUE MEMORANDUM CIRCULAR NO. 02-81 SUBJECT : Prescribing a Uniform Exchange Rate for U.S. Dollars and Other Foreign Currencies to Philippine pesos for Internal Revenue Tax Purposes for the Calendar Year 1981 TO : All Internal Revenue Officers and Others Concerned For the purpose of establishing a uniform rate of exchange of U.S. dollars and other foreign currencies to Philippine pesos for internal revenue tax purposes for the calendar year 1981, the following schedule of exchange rates are hereby prescribed for reference and guidance of all concerned: 1. For income tax purposes, the following rules shall govern: (a) In the case of resident citizens and alien individuals as well as domestic corporations deriving income in foreign currency, whether from within or without the Philippines, the conversion rate shall be at P7.55 to U.S. $1.00; cdt (b) In the case of non-resident citizen whose income tax liability is computed in terms of U.S. dollars and who chooses to pay his income tax liability in Philippine pesos, the conversion shall be at the guiding rate of exchange quoted by the Central Bank at the time he makes the payment; (c) For purposes of branch profit remittance tax, conversion shall be at P7.55 to U.S. $1.00; (d) In the case of International Carriers, whether regularly operating in the Philippines or not, including tramp vessels and off-line international airlines, the conversion shall be at P7.55 to U.S. $1.00; (e) For purposes of withholding taxes at source, provided for under Sections 53 and 54 of the Tax Code of 1977, the conversion shall be at P7.55 to U.S. $1.00 . cd i 2. For percentage tax purposes, the following rules shall govern: (a) In the case of International Carriers, whether regularly operating in the Philippines or not, including tramp vessels and off-line international airlines, the conversion shall be at P7.55 to U.S. $1.00; (b) In the case of transactions involving computation of advance sales tax or compensating tax, the rate of exchange used by the Bureau of Customs at the time of payment of such taxes shall prevail; (c) For purposes of other percentage taxes, the conversion shall be at P7.55 to U.S. $1.00. 3. For other tax purposes, the conversion shall be at P7.55 to U.S.$1.00. 4. Where the currency involved is other than U.S. dollars, the foreign currency shall first be converted to U.S. dollars at the prevailing rate of exchange between the two currencies. The resulting amount shall then be converted to Philippines pesos in accordance with the above promulgated rules. ENFORCEMENT AND PUBLICITY All Internal Revenue Officers and others charged with the enforcement of internal revenue laws are enjoined to enforce the provision of this Circular accordingly and to give it as wide a publicity as possible. RUBEN B. ANCHETA Acting Commissioner