Applicable Uniform Exchange Rate of U.S. Dollar to Philippine Peso for the Collection of Internal Revenue Memorandum Circular No. 26-85, dated July 15, 1985

December 19, 1989 REVENUE MEMORANDUM CIRCULAR NO. 77-89 SUBJECT : Applicable Uniform Exchange Rate of U.S. Dollar to Philippine Peso for the Collection of Internal Revenue Memorandum Circular No. 26-85, dated July 15, 1985 TO : All Internal Revenue Officers; All Revenue Attache, Revenue Attache and Officers Authorized to Collect Internal Revenue Taxes Abroad; Others Concerned For internal revenue tax purposes, the following rules are hereby prescribed to govern the conversion of U.S. Dollar and other acceptable foreign currencies to Philippine Peso for the collection of taxes. 1. For payment made in the Philippines. Payment of internal revenue tax liabilities in the Philippines may be made either in cash or personal check (not accommodation checks). The tax liability in U.S. Dollars shall first be computed into Philippine peso equivalence. The conversion rate to be applied shall be the prevailing interbank reference rate at the time of payment and the liability shall be settled in Philippine currency. aisa dc If payment is made in foreign currency check, no BIR official receipt shall be issued; instead, a letter of acknowledgment shall be issued by the collecting officer to evidence receipt of the foreign currency check for clearance and conversion to Philippine pesos by the Central Bank of the Philippines/depository bank. When the check has been cleared and converted to Philippine peso by the Central Bank/depository bank, the corresponding BIR official receipt shall be issued in accordance with existing regulations. 2. For payment made abroad thru the Revenue Attache, Revenue Representative and/or Finance Officer of foreign posts who are authorized to collect internal revenue taxes. (a) Payment may be made in Philippine Peso, the U.S. Dollar or any other acceptable foreign currency. However, the U.S. Dollar shall be used as the base currency. Collection in any acceptable foreign currency other than the U.S. Dollar shall state in the Official Receipt the currency involved and its U.S. Dollar equivalent, indicating the conversion rate used at the time of payment. (b) The conversion rate to be applied shall be the local prevailing bank reference rate at the time of payment in the country where the payment is made. No other reference rate shall be used. All previous Circulars, Memoranda or Orders are hereby amended or modified accordingly. All internal revenue officers and other officials charged with the enforcement of internal revenue laws are enjoined to adhere to the provisions of this Circular and are urged to give the same the widest publicity possible. cd i (SGD.) JOSE U. ONG Commissioner of Internal Revenue