March 21, 2019
DA ITAD BIR RULING NO. 009-19
Principle of Reciprocity;
BIR Ruling No. ITAD-401-12
Embassy of the Republic of Singapore
No. 505, Rizal Drive, Bonifacio Global City
1634 Taguig City, Metro Manila
Gentlemen :
This has reference to your Note No. 040/2019 dated February 22, 2019 referred to this Office by the Department of Finance and the Department of Foreign Affairs (DFA), requesting for the exemption from the payment of value-added (VAT) and ad valorem taxes on the local purchase of a motor vehicle for the official use of the Embassy of the Republic of Singapore, specifically described as follows:
Type of Use: | Official |
Make: | Ford Everest 3.2L 4x4 A/T Titanium Plus |
Model Year: | 2018 |
Color: | Absolute Black |
Frame Number: | MNCAXXMAWAJJ42903 |
Engine Number: | P5AT2651244 |
In reply, please be informed that Article 34 of the Vienna Convention on Diplomatic Relations reads:
"ARTICLE 34
A diplomatic agent shall be exempt from all dues and taxes, personal or real, national, regional or municipal, except:
(a) indirect taxes of a kind which are normally incorporated in the price of the goods and services;
xxx xxx xxx"
Thus, the tax exemption privilege of an Embassy and its diplomatic agents does not include exemption...
