LTO MEMORANDUM

: The exemption is based on Section 109(2) and percentage tax provisions under Republic Act No. 7716 and Revenue Regulation No. 7-95 as per the Bureau of Internal Revenue.
: Tricycle operators must have an income below P550,000.00 to be exempt from the common carrier's tax or value added tax.
: Tricycle operators with income below P100,000.00 are exempt from the percentage tax.
: The BIR certificate of exemption is required instead of proof of payment of the said taxes.
: It serves as proof that the operator is exempt from paying the common carrier's tax, value added tax, or percentage tax required for tricycle registration.
: Republic Act No. 7716 provides for the exemption.
: Revenue Regulation No. 7-95 complements the exemption policy by setting the income thresholds and implementing rules.
: Assistant Secretary Benjamin G. Calima signed the memorandum.
: The purpose is to inform that BIR exempts tricycle operators from paying certain taxes if they meet income requirements, and to establish that the BIR certificate of exemption will be required for tricycle registration.