Question & AnswerQ&A (Republic Act No. 361)
The main purpose of Republic Act No. 361 is to amend Section 190 of the National Internal Revenue Code, particularly to impose a compensating tax on persons purchasing or receiving commodities from outside the Philippines, except those subject to specific taxes under Title IV of the Code.
All persons residing or doing business in the Philippines who purchase or receive from without the Philippines any commodities, goods, wares, or merchandise (except those subject to specific taxes under Title IV) are required to pay the compensating tax.
The total value of goods includes the value at the time they are received by the person, including freight, postage, insurance, commission, and all similar charges.
The compensating tax must be paid upon the withdrawal or removal of the commodities, goods, wares, or merchandise from the customhouse or the post office.
Merchants, importers, and manufacturers who are subject to tax under sections 184, 185, 186, or 189 are exempt from paying the compensating tax if the goods are to be sold, resold, bartered or exchanged or used in the manufacture or preparation of articles for sale, barter, or exchange and will form part of those articles.
If the compensating tax is not paid within thirty days after entry or notice to the Collector of Internal Revenue, the tax shall be increased by 25%, with the increment becoming part of the tax.
Yes, the compensating tax shall not be assessed or collected on any single shipment consigned to any single person if the total value does not exceed 100 pesos. Also, goods brought by residents returning from abroad valued at 500 pesos or less are exempt from this tax.
No, the phrase 'commodities, goods, wares, or merchandise' does not include vessels, their equipment, and/or appurtenances purchased or received from without the Philippines.
The importer must make a corresponding entry in the books of accounts or send written notice to the Collector of Internal Revenue and pay the corresponding compensating tax within 30 days from the date of such entry or notice.
This Act took effect upon its approval on June 9, 1949.