Publishing Section 30 (c) of the National Internal Revenue Code, as Amended by Presidential Decree No. 1705

December 2, 1980 REVENUE MEMORANDUM CIRCULAR NO. 56-80 SUBJECT : Publishing Section 30 (c) of the National Internal Revenue Code, as Amended by Presidential Decree No. 1705 TO : All Internal Revenue Officers and Others Concerned For the information of all concerned, Section 30 (c) of the National Internal Revenue Code, as amended by P.D. No. 1705 is quoted as follows: "Sec. 30. Deductions from gross income . In computing net income there shall be allowed as deductions xxx xxx xxx "(c) Taxes: "(1) In general . Taxes paid or accrued within the taxable year, except - xxx xxx xxx "(F) Taxes paid on articles imported by the taxpayer where such importation is not connected with his trade or business. cd "(G) Excess electric energy consumption tax imposed by Batas Pambansa Blg. 36." FEATURES OF THE AMENDMENT P.D. No. 1705 further restricts the scope of taxes which are deductible under Section 30(c) of the 1977 Tax Code by adding two non-deductible taxes, e.g.: 1. Taxes paid on articles imported by the taxpayer where such importation is not connected with his trade or business . Previously, all taxes paid on imported articles were allowed as deduction for the taxpayer-importer. Under this amendment, a taxpayer is now precluded from claiming said taxes as deduction if the importation is not connected with the taxpayer's trade or business. Thus, compensating taxes paid on articles imported for one's own personal use is no longer deductible because it is not connected with the taxpayer's business. 2. Excess electric energy consumption tax imposed by Batas Pambansa Blg. 36 . Non-deductibility of this tax was provided by Batas Pambansa Blg. 36. This was inserted in the new Decree so that the same shall form part of the present Code. aisa dc Effectivity . The foregoing amendment took effect upon the promulgation of P.D. No. 1705 on August 1, 1980. Enforcement . It is desired that this Circular be given as wide a publicity as possible. RUBEN B. ANCHETA Acting Commissioner