n\a

October 16, 2018DA ITAD BIR RULING NO. 048-18Principle of Reciprocity;BIR Ruling No. ITAD-322-11Embassy of the Republic of Panama11th Floor, National Life Insurance Building6762 Ayala Avenue,1200 Makati CityGentlemen :This has reference to your Note E.M.P. 327/170918 dated September 18, 2018 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 personal use of AAA, _______________ of the Embassy of the Republic of Panama, specifically described as follows: ASEcHI Type of Use:PersonalMake:Mitsubishi Montero Sport GLS Premium 2.4D 2WD ATModel Year:2016Color:Pyrenese BlackFrame Number:MMBGUKR10GH026594Engine Number:4N15UAS8863 In reply, please be informed that Article 34 of the Vienna Convention on Diplomatic Relations reads:"ARTICLE 34A 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...