Publishing Paragraph 3 of the Memorandum of Agreement between the Government of the Philippines and the International Bank of Reconstruction and Development, the Bank's Affiliates, and the International Monetary Fund for the 1976 Annual Meetings of their Boards of Governors

September 27, 1976 REVENUE MEMORANDUM CIRCULAR NO. 28-76 SUBJECT : Publishing Paragraph 3 of the Memorandum of Agreement between the Government of the Philippines and the International Bank of Reconstruction and Development, the Bank's Affiliates, and the International Monetary Fund for the 1976 Annual Meetings of their Boards of Governors TO : All Internal Revenue Officers and others concerned For the information and guidance of all concerned, there are quoted below the provisions of Paragraph 3 of the above-captioned Agreement: "3. Customs, Taxes and Immunities "Personal baggage belonging to Governors, Alternate Governors, members of delegations, Executive Directors, Alternate Executive Directors, Advisors to Executive Directors, Officers, staff, and special guests, identified by special luggage tags issued will be admitted free of duty and taxes and expedited through the Philippine customs. The Organizations are immune from search, requisition, confiscation, expropriation, or any other form of seizure by executive or legislative action with respect to their property and assets. Their archives are inviolable. The Organizations, their assets, property, income, operations and transactions authorized by their respective Articles of Agreement are immune from all taxation and from all customs duties. The Organizations are also immune from liability for the collection or payment of any tax or duty. Accordingly, The Government will arrange to admit free of duty all Annual Meetings property and supplies brought into the Philippines by or on behalf of the Organizations. Such property and supplies will be identified by special shipping labels issued by the organizations in collaboration with the Government. The Government recognizes that the Organizations must ship out of the country, free of duty, without inspection or recording, their equipment (whether owned or rented outside the Philippines), property, unused supplies, documents, records, etc." Guidelines in the implementation of the Memorandum of Agreement I. Who are entitled to tax exemption : The International Bank for Reconstruction and Development, the said Bank's affiliates, and the International Monetary Fund for the 1976 annual meetings of their Boards of Governors. II. What items are exempt from tax : (a) Assets, supplies, property, archives and equipment of any sort belonging to any of the above-named organizations that may be brought into the Philippines in connection with their 1976 annual meetings in Manila; (b) Purchases of locally manufactured articles from manufacturers; and (c) Purchases of food and drinks and of service from restaurants, hotels, night clubs, caterers and other establishments. III. Taxes from which said organizations are exempt : (a) Compensating and specific taxes on articles brought in by the organization for its use or consumption; (b) Sales tax on sales of locally manufactured articles effected by manufacturers; (c) Percentage tax on sales of food by restaurants, hotels, night clubs, caterers or any establishment, wherever said establishment may be located; (d) Percentage tax on payments of services by independent contractors; and (e) Documentary and science stamp taxes. IV. Procedure to be followed in effecting exemption . (a) Any of the abovementioned organizations which desire to purchase goods or merchandise, food or drinks, or services shall file a purchase order to be prepared by the authorized representative of the organization. (b) Upon presentation of the duly prepared purchase order as authenticated by the Central Bank, the seller of the goods or services shall issue an invoice, in duplicate, stating thereon the name of the organization; the kind and quantity of the merchandise sold and/or services rendered; the selling price or consideration therefor; the amount of tax due thereon (which should be separately stated in the invoice); the total amount payable, including tax, which amount shall be charged against the buyer or customer. (c) The manufacturer, restaurant, and/or hotel operator and contractor selling merchandise or services to the abovenamed tax exempt organizations shall include in his percentage tax returns to be filed by him, his sales to said tax exempt organizations. (d) Within thirty (30) days after the meetings of the abovenamed organizations, the Central Bank, in representation of the abovenamed organizations, shall file with this Office claims for the refund of the taxes billed by the sellers to the abovenamed organizations attaching thereto copies of the purchase order issued by the organizations duly authenticated by the Central Bank and the invoice issued by the seller. Upon proper audit verification, said taxes shall be refunded by this Office to the abovenamed organizations, thru the Central Bank. V. Enforcement All internal revenue officers and others concerned are enjoined to be guided accordingly and to give this circular as wide a publicity as possible. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3