BIR Ruling No. 423-2022

REPUBLICOFTHE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

BIR Ruling No.005-17 Sections 101 B1 of the Tax Code of 1997,as amended CTE-423-2022 NOV O 4 2022

UN Building, 3rd Floor, Rajdamnern Nok Avenue Regional Office for Southeast Asia and the Pacific UNITED NATIONS OFFICE ON DRUGS AND CRIME Bangkok 10200, Thailand

Attention: Mr. Shanaka Jayasekara Programme Coordinator (Southeast Asia and the Pacific)

Gentlemen:

of a Fixed Passive Radar Sensor System to the Philippine National Coast Watch Center (NCWC). This refers to your request for exemption from customs duties and taxes on the donation

NCWC,valued at $238,226.00P13,278,717.24.Below is the description of the Fixed Passive Radar Sensor System equipment: Office on Drugs and Crimes (UNODC donated a Fixed Passive Radar Sensor System to It is represented that the Global Maritime Crime Programme of the United Nations

Item 2 3 1 Desktop Computer Passive RF Sensor Automatic Identification System (AIS) Receiver Description Quantity 3 sets 1 set 1 set

4 5 LED Smart TV GSM Sim Card Modem 3 sets 2 sets

The system will be used to enhance NWC's surveillance capabilities through the

real-time basis. Common operational picture (COP) platforms will also be installed at the NCWC and Maritime Situational Awareness Center Western Mindanao MSAC-WM watch installation of the system in Bongao Island, Tawi-Tawi,to detect small craft activities on a floors to allow the simultaneous monitoring and tracking of the said small craft activity.

In reply,please be informed that donations made in favor of the National Government or any of its agencies which are not conducted for profit are exempt from the payment of the Code (Tax Code) of 1997, as amended, viz: donor's tax pursuant to the provision of Section 101 B(1 of the National Internal Revenuc

C423-2022 NOV 0 4 2022

donations shall be exempt from the tax provided for in this Chapter: "SEC. 101. Exemption of Certain Gifts. -- The following gifts or

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(B) In the Case of Gifts Made by a Non-resident not a citizen of the Philippines.

entity created by any of its agencies which is not conducted for profit or to any political subdivision of the said Government. ' (1) Gifts made to or for the use of the National Government or any

virtue of Executive Order No.57,s.2011, the donation made by UNODC in its favor is exempt from the payment of donor's tax pursuant to the above quoted provision. Accordingly, since the NCWC is an agency of the National Government created by

under Section 188 of the same Code.2 However, the deed of donation is subject to documentary stamp tax of P15.00 imposed

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. However.

Very truly yours.

Commissioner of Internal Revenue LILIA CATRIS GUILLERMO baL l.Gajll

K-1 002290

2 BIR Ruling No. 005-2017 Supra 1 BIR Ruling No. 005-2017, January 16, 2017