Regulations Implementing Presidential Decree No. 789 Granting Tax Exemptions to the International Development Research Centre (IDRC) and its Foreign Staff Members

October 20, 1975 REVENUE MEMORANDUM CIRCULAR NO. 38-75 SUBJECT : Regulations Implementing Presidential Decree No. 789 Granting Tax Exemptions to the International Development Research Centre (IDRC) and its Foreign Staff Members TO : To All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is quoted hereunder Department Order No. 96-75 of the Department of Finance dated September 25, 1975, bearing on the above subject-matter. "Pursuant to Section 5 of Presidential Decree No. 789, the following rules and regulations are hereby promulgated for the guidance of all concerned: "SECTION 1. Scope . These Regulations implement Presidential Decree No. 789 granting tax exemptions to the International Development Research Centre (IDRC) and its Foreign Staff Members. "SECTION 2. Exemption from internal revenue taxes . The International Development Research Centre shall be exempt from the payment of internal revenue taxes which otherwise would have been directly payable by it, under the National Internal Revenue Code. This shall include the exemption from income, estate and donor's taxes. "SECTION 3. Exemption from import duties . The International Development Research Centre shall be exempt from the payment of import duties under the Tariff and Customs Code on articles imported for its own use. "SECTION 4. Exemption from local taxes . The International Development Research Centre shall be exempt from the payment of local taxes and other revenue impositions or levies imposed by provincial, city and municipal governments. "SECTION 5. Exemption of personal and household effects . Personal effects and household goods, except motor vehicles, water or aircraft, shall be exempt from compensating tax and import duties when they are brought in or imported for the personal and/or family use of the foreign personnel whose services are paid from the funds of or granted by the International Development Research Centre. "SECTION 6. Tax exemption on equipment , motor vehicles and other goods . Imported equipment, motor vehicles and other goods which are financed from funds of, and for use on projects financed by the International Development Research Centre shall be exempt from compensating tax and import duties. "SECTION 7. Tax exemptions and other privileges of non-Filipino citizens or non-residents aliens . Non-Filipino citizens or non-residents aliens serving on the staff of the International Development Research Centre shall be exempt from the payment of income tax on their salaries, stipends or other income in dollars derived solely and by reason of their services with the Centre in the Philippines. "Such salaries, stipends or other income shall not be subject to any social security contribution which are required under existing law to be paid by employers and employees to the Social Security System. "SECTION 8. Effectivity . These regulations shall take effect immediately. "(SGD.) ALFREDO PIO DE RODA, JR. Acting Secretary This circular should be given as wide publicity as possible. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3