BIR Ruling No. 433-2017

RFPUBICOFTHI IHIIPPINES

BUREAU OF INTERNAL REVENUE DEIPTMENIOF FINAN +

Quezon City.

Code, as_amended Revenue Regulations No. 15-201'5 Section 109(1)(T) of the 1997 Tax

BIR Ruling No. 092-2016

VIA MARINE CORPORATION C3 Road cor. North Bay Blvd. Navotas. Metro Manila 1435-PO17 2-5-3C -7

Attention: Vic Rossano C. Ignacio President

Gentlemen:

Marine Corporation. for a Certificate of Value-Added Tax (VAT) Fxemption on its importation of the 2012-built pursuant to Section 109(1)(T) of the National Intermal Revenue Code (NIRC) ot 1997. as amended This refers to your letter dated August 27. 2015. requesting on bchaif of Via GT Oil Tanker named, M/T -Many One".

built 2.998 GT Oil Tanker named "Many One" which is particularly described as Authority (MARINA) to engage in domestic shipping business per MARINA Certificate No. follows: corporation registered with the Securities and Exchange Commission (SEC) under Company Registration No. November 17. 2018: and that Via Marine Corporation is currently importing a 2012 Documents submitted show that Via Marine Corporation is a domestic : that it is duly accredited hy the Maritime Industry (2015) dated October 14. 2015 valid until

Vessel's Name Class Notation IMO Number Year of Build Builder/Yard Place of Registration GT/NT Flag HULL M/t "MaNy ONe Unrestricted Panama 2,998/ 1,336 Survey. Vcs 2012 Panama Yangzhou Kejin Shipyard Co. I.td. China Mach.. Navigation. O Tanker In Water ESP

VIA MARINE CORPORATION 435-2017 -x?

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that MARINA has approved the importation of the above vessel in its letter dated July 30. 2015: and that per Sworn Statement dated October 21, 2015 executed by Vic

be manufactured domestically in sufficient quantity and comparable quality and at a reasonable price, and that it is reasonably needed and will be used exclusively by the Rossano C. Ignacio. President of Via Marine Corporation, the subject vessel cannot

company in its operations.

amended. provides as follows: In reply, please be informed that Section 109(1)('T) of the NIRC of 1997. as

"Sec. 109 Exempt Transactions . -- Exempt Transactions.-

following trunsactions shall be exenpt fron the value-added tax. (1) Subject to the provisions of Subsection (2) hereof. the

domestic or international iransport operations. uircruft. including engine, equipment and spare parts thereof for 'T'}' Sale, importation or lease of passenger or cargo vessels and

amended by RR No. 15-2015. which implements the above-quoted provision. provides: vessel destined for domestic transport operations shall be exempt from V AT. In retation thereto, Section 4.109-1 (B)(1)(t) of the Revenue Regulations (RR) No. 16-2005. as Bascd on the above-cited provision, the importation, among others, of a carge

"SECTION 4.109-1. VAT-Exempt Transactions.

XXX XXX X.XX

(B) Exempt transactions.

following transactions shall be exempt from VAT: Subject to the provisions of Subsection (2) hereof. the

xxxXxx XXX

parts thereof for domestic or international transport ( vessels and aircraft. including engine, equipment and spare Sale, importation or lease of passenger or cargo

operations: Provided. however, that ihe exemption from

restriction on vessel importation and mandatory vessel VAT on the importation and local purchuse of passenger und/or cargo vessels shall be subject to the requirements on

retirement program of MARINA.

MARINA with the required authority to be imported. Hence, the importation of the It is noted that M/T "Many One" is a 2012-built vessel and has been issued by

Said vessel by Via Marine Corporation is deemed compliant with the requirements on restriction on vessel importation and mandatory vessel retirement program of

1 Renumhered by Republic Act No. 10378

Page 3 of 3 VIA MARINE CORPORATION t, 433-2017 9-6-2017

the conditions contained in the letter of approval issued by MARINA for the MARINA. Accordingly, the importation by Via Marine Corporation of M/T "Many One" shall be exempt from VAT pursuant to Section 109(1)(T) of the NIRC of 1997. as amended. The VAT exemption. however, shall be subject to the strict compliance of importation of the subject vessel.

However, if upon investigation. it will be disclosed that the facts are different. then this ruling shall be considered null and void. This ruling is being issued on the basis of the foregoing facts as represented

Very truly yours.

Commissioner of Internal Revenue CAESAR R. DULAY

K-1-J+{B CELIA C. H C KN

Resource Management Group Deputy Commissioner

Officer-In-Charpe