BIR Ruling

May 19, 1977 Farm System Development Corporation Vetsbank Building Bonifacio Drive, Port Area Metro-Manila Attention: Mr . Teodoro C . Rey, Jr . Administrator Gentlemen : In reply to your letter dated April 16, 1977, I have the honor to inform you that you are exempt from the payment of income tax and consequently, of the duty of filing income tax returns for a period of ten years from April 4, 1975, date of effectivity of Presidential Decree No. 681. Pertinent portion of Section 13 of said Decree, provides: "Section 13. Exemption from all taxes, duties, fees, imposts and other charges by government and government instrumentalities . The FSDC shall devote all its returns from its capital investments as well as excess revenues from its operation to attain its objectives. To enable the FSDC to pay its indebtedness and obligations and in furtherance and effective implementation of the policy enunciated in this Decree, the FSDC is hereby declared exempt for a period of ten years from the effectivity of this Decree. xxx xxx xxx "b) From all income taxes, franchise taxes and realty taxes to be paid to the National Government, its province, cities, municipalities, and other government agencies and instrumentalities." cdti xxx xxx xxx Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8