BIR Ruling No. 436-2021

RKPUBLIC:OF TOH PIIILIPIMNKS DEPARTMENT OF FINANCE BUREAU OFINTERNAL REVENUE Quezon City RA No.7459; RR No. 19- 1993 BIR Ruling No.524-2018 i I *V" � 3 5 - 2 0 Z' ~IIECTTT021 LYLE CHRISTIAN R.HERBOSA Laguna Sir: This refers to your letter dated May 18, 2021 requesting for clarification on the tax privilege of inventors pursuant to Republic Act (RA) No. 7459, otherwise known as the InventorsandInventionsIncentivesActofthe Philippines''''in relation to BIR Ruling No.524- 2018 dated March 15,2018. I Prefatorily,Section6ol'RA No.7459 providesfor the tax exemption granted to Filipino inventors, viz: SEC. 6 Tax Exemption. - To promote, encourage, develop and accelerate commercialization of technologies developed by local researchers or adapted locally from foreign sources including inventiom, any income derivedfrom these technologies shall he exemptedfrom all kinds oftaxes during thefir.st ten(10)yearsfrom the date ofthefirst sale, subject to the rules and regulations ofthe Department ofFinance:Provided, that this tax exemption privilege pertaining to invention shall be extended to the legal heir or assignee upon the death ofthe inventor. The technologies, their manufacture or sale, shall also be exempt from paymentcflicense,permitfees,customs duties andcharges on imports. Pursuant to the aforecited provision, the Department of Finance(DOF)through this Bureau issued Revenue Regu ations(RR)No. 19-1993 which provides for the tax exemption ofan inventor,to wit: SEC. 3. Tax Incentives and Tax Exemptions. a:jc;c XXX C. The Inventor shall be exemptfrom thefollowing taxesfor which otherwise he:shall have been directly liable: f