Amending Revenue Memorandum Circular No. 5-85 dated February 26, 1985 on the Applicable Uniform Exchange Rate of U.S. Dollar to Philippine Peso for Internal Revenue Tax Purposes

July 15, 1985 REVENUE MEMORANDUM CIRCULAR NO. 26-85 SUBJECT : Amending Revenue Memorandum Circular No. 5-85 dated February 26, 1985 on the Applicable Uniform Exchange Rate of U.S. Dollar to Philippine Peso for Internal Revenue Tax Purposes TO : All Internal Revenue Offices 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 pesos contained in Revenue Memorandum Circular No. 5-85 dated February 26, 1985: a) Beginning January 1, 1985, the conversion rate to be applied shall be the prevailing interbank reference rate for the day of the transaction. b) In the event that the foreign exchange rate as stated in the above paragraph (a) is impractical or not feasible, the average interbank reference during the year shall apply. aisa dc c) For the purpose of converting the tax liability in U.S. dollar to Philippine Peso, the prevailing interbank rate at the time of payment shall be applied when paid before the due date of the tax or the prevailing interbank reference rate at the due date of tax when paid on or after the due date of the tax. d) When currency involved is other than U.S. dollar, the foreign currency shall first be converted to U.S. dollar at the prevailing exchanges rate between the two currencies. This circular does not apply to transaction 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 bank, 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 the foreign currency. ENFORCEMENT AND PUBLICITY All internal revenue officers and other 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. (SGD.) RUBEN B. ANCHETA Acting Commissioner