BIR Ruling

December 8, 1976 Messrs. Joaquin Cunanan & Co. 8th Floor, Rufino Bldg. 6784 Ayala Avenue Makati, Rizal Gentlemen : This refers to your letter dated November 29, 1976, requesting a certification from this Office that the dividends which your client, Franklin Baker Company of the Philippines, will remit to General Foods Corporation is subject to withholding tax at the rate of 15%,instead of 35%. It appears that your client is a domestic corporation; that it is a wholly-owned subsidiary of the aforenamed recipient corporation; and that said corporation is a non-resident foreign corporation domiciled in U.S. In view thereof, and considering that under the present provisions of the U.S. Federal Tax Code, the amount of tax deemed paid on such dividends, and accordingly, to be credited against U.S. tax on said dividends, exceeds the 20% requirement of Presidential Decree No. 369, this Office hereby certifies that the dividends which your client will remit to General Foods Corporation domiciled in U.S. are subject to withholding tax at the rate of 15% only. (BIR Ruling No. 76-004 dated July 19, 1976) Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3