Prescribing a Uniform Exchange Rate for U.S. Dollars to Philippine Pesos for Internal Revenue Tax Purposes

February 11, 1971 REVENUE MEMORANDUM CIRCULAR NO. 07-71 SUBJECT : Prescribing a Uniform Exchange Rate for U.S. Dollars to Philippine Pesos for Internal Revenue Tax Purposes TO : All Internal Revenue Officers and others concerned For the purpose of establishing a uniform rate of exchange of U.S. dollars to Philippine pesos for internal revenue tax purposes for the year 1970, the following schedule of exchange rates are hereby prescribed for reference and guidelines of all concerned: Schedule of Exchange Rates 1. In all cases of transactions involving remittances and acceptances of U.S. dollars occurring during the period from January 1 to February 20, 1970, the official rate of exchange of P3.90 to $1.00 shall be used. 2. In the case of transactions involving remittances or acceptances of U.S. dollars occurring after February 20, 1970, the following rules shall govern: (a) In the case of regular or habitual transactions involving remittances and acceptances of U.S. dollars, such as salaries, royalty payments and the like, the uniform rate of P6.25 to U.S. $1.00 shall be used; provided, however, that in the case of transactions involving the computation of advance sales or compensating taxes, the rates used by the Bureau of Customs at the time of the payment of such taxes shall prevail. (b) In the case of an isolated or casual transaction involving remittances or acceptances of U.S. dollars, such as dividends, occasional sales of property and the like, the exchange rate quoted by the Foreign Exchange Department of the Central Bank of the Philippines prevailing at the time of such remittances or acceptance shall be used. Enforcement and Publicity All internal revenue officers and others charged with the enforcement of internal revenue laws are enjoined to enforce the provisions of this circular accordingly and to give it as wide a publicity as possible. cdt MISAEL P. VERA Commissioner of Internal Revenue APPROVED: CESAR VIRATA Secretary of Finance