Amending Revenue Memorandum Circular No. 33-83 dated October 6, 1983 on the Applicable Uniform Exchange Rate of U.S. Dollar to Philippine Peso for Internal Revenue Tax Purposes

February 26, 1985 REVENUE MEMORANDUM CIRCULAR NO. 05-85 SUBJECT : Amending Revenue Memorandum Circular No. 33-83 dated October 6, 1983 on the Applicable Uniform Exchange Rate of U.S. Dollar to Philippine Peso for Internal Revenue Tax Purposes TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, the following rules as amended are hereby prescribed to govern the conversion of U. S. Dollar and other foreign currencies to Philippine peso contained in Revenue Memorandum Circular No. 33-83 dated October 6, 1983: a) January 1 to June 5, 1984 The conversion rate to be applied shall be P14.00 to US $1.00 or the guiding rate of exchange at the time of the transaction as quoted by the Central Bank whichever is higher; b) June 6 to October 2, 1984 The conversion rate to be applied shall be P18.00 to US $1.00 or the guiding rate of exchange at the time of the transaction as quoted by the Central Bank whichever is higher; c) October 3 to December 31, 1984 The conversion rate to be applied shall be P19.62 to US $1.00 or the average reference rate of exchange at the time of the transaction as quoted by the Central Bank whichever is higher ; d) In the event that the foreign exchange rate as stated in the above paragraphs a), b) and c) is impractical or not feasible, the average exchange rate of P16.74 to US $1.00 shall apply. e) For the purposes of converting the tax liability in U.S. dollar to Philippine peso, the average reference rate as quoted by the Central Bank of the Philippine at the time of payment shall be applied when paid before the due date of the tax or the Average Reference Rate at the due date when paid on or after the due date of the tax. This circular does not apply to transactions covered by Revenue Memorandum Circular No. 30-84 dated October 19, 1984 regarding the imposition of additional one per cent (1%) gross receipt tax on buying and selling of foreign exchange for peso by banks, non-bank financial intermediaries and other authorized foreign exchange dealers or agents and Revenue Memorandum Circular No. 32-84 dated November 7, 1984, in determining (for income tax purposes) the cost basis of certain commodities imported beginning January 1, 1984 the value and prices thereof are quoted in foreign currency. ENFORCEMENT AND PUBLICITY All Internal Revenue Officers and Others charged with the enforcement of internal revenue laws are enjoined to adhere to the provisions of this Circular and to give it the widest publicity possible. cd RUBEN B. ANCHETA Acting Commissioner