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

December 20, 1971 REVENUE MEMORANDUM CIRCULAR NO. 41-71 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 or other foreign currencies to Philippine pesos for internal revenue tax purposes for the year 1971, the following schedule of exchange rates are hereby prescribed for reference and guidelines of all concerned: Schedule of Exchange Rates In all cases of transactions involving remittances and acceptances of U.S. dollars and other foreign currencies occurring during the year 1971, the following rules shall govern: (a)In the case of regular or habitual transactions involving remittances or acceptances of U.S. dollars or other foreign currencies such as salaries, wages, fees or other remuneration for personal services, royalties, rents, interests or other fixed or determinable annual or periodical income, the uniform rate of P6.25 to U.S. $1.00 shall be used. (b)In the case of transactions involving the computation of advance sales or compensating taxes, the rate of exchange used by the Bureau of Customs at the time of the payment of such taxes shall prevail. (c)In the case of an isolated or casual transaction involving remittances or acceptances of U.S. dollars or other foreign currencies such as dividends, interests, capital gains or other gains from occasional sales or 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 acceptances shall be used. (d)Where the currency involved is other than U.S. dollars, the foreign currency shall first be converted to U.S. dollars at the prevailing rate of exchange between the two currencies. The resulting amount shall then be converted to Philippine pesos in accordance with the above-promulgated rules. cdt 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. MISAEL P. VERA Commissioner of Internal Revenue APPROVED: CESAR VIRATA Secretary of Finance