REVENUE REGULATIONS NO.

26-85
July 15, 1985

SUBJECT : Amending Revenue Memorandum Circular No. 5-85 dated February 26, 1985 on the Applicable Uniform Exchange
Rate of U.S. Dollar to Philippine Peso for Internal Revenue Tax Purposes.

TO : All Internal Revenue Offices and Other Concerned

For the information and guidance of all concerned, the following rules as amended are hereby prescribed to govern the conversion of
U.S. dollar and other foreign currencies to Philippine pesos contained in Revenue Memorandum Circular No. 5-85 dated February 26,
1985:
a) Beginning January 1, 1985, the conversion rate to be applied shall be the prevailing interbank reference rate for the day of the
transaction.
b) In the event that the foreign exchange rate as stated in the above paragraph (a) is impractical or not feasible, the average
interbank reference during the year shall apply.
c) For the purpose of converting the tax liability in U.S. dollar to Philippine Peso, the prevailing interbank rate at the time of payment
shall be applied when paid before the due date of the tax or the prevailing interbank reference rate at the due date of tax when paid
on or after the due date of the tax.
d) When currency involved is other than U.S. dollar, the foreign currency shall first be converted to U.S. dollar at the prevailing
exchanges rate between the two currencies.

This circular does not apply to transaction covered by Revenue Memorandum Circular No. 30-84 dated October 19, 1984, regarding
the imposition of additional one per cent (1%) gross receipts tax on buying and selling of foreign exchange for peso by bank, non-bank
financial intermediaries and other authorized foreign exchange dealers or agents and Revenue Memorandum Circular No. 32-84 dated
November 7, 1984, in determining (for income tax purposes) the cost basis of certain commodities imported beginning January 1, 1984,
the value and prices thereof are quoted in the foreign currency.

ENFORCEMENT AND PUBLICITY

All internal revenue officers and other charged with the enforcement of internal revenue laws are enjoined to adhere to the provisions of
this circular and to give it the widest publicity possible.

(SGD.) RUBEN B. ANCHETA

Acting Commissioner