BIR Ruling

March 15, 1973 Sycip, Salazar, Luna, Manalo & Feliciano 3rd Floor, Far East Building Buendia Avenue Makati, Rizal Attention: Atty . Cirilo T . Tolosa Gentlemen : This is in reply to your letter dated January 22, 1973 requesting a certification to the effect that the following persons are subject to income tax on their income earned while in the Philippines, viz: cdi "1. Mr. Bjorn Finborud Position Chief Soils Engineer Birth date December 6, 1935 Date of arrival in the Philippines August 8, 1971 Passport No. and date and place of issue B0498372-14 July 18, 1969 Sandvika Police District Civil Status Married Name of wife and dependents with ages Aud Finborud (33 years) Tove Lena 7 years Andreas 4 years Home address Solhangveien 90A 1300 Sandvika, Norway Date of Departure Still in the Philippines Compensation for services rendered in the Philippines P4,500.00 Monthly "2. Oystein Sverdrun Position Engineer Birth date August 15, 1940 Date of Arrival in the Philippines August 29, 1971 Passport No. and date and place of issue B0281784-14 May 2, 1968 Asker & Baerum Police District Civil Status Married. Name of wife and dependent with ages Eli Sverdrup (30 years) Therese 5 years Marianna 3 years Home address Anton Walles vei 1300 Sandvika, Norway Date of departure Still in the Philippines Compensation for services rendered in the Philippines P4,500.00 Monthly "3. Per M. Landfald Position Chief Bridge Engr. Birth date June 20, 1930 Date or arrival in the Philippines October 2, 1971 Passport No. and date and place of issue B0280964-14 May 29, 1968 Sandvika Police District Civil Status Married Name of Wife and dependents with ages Aud J. Landfald (39 years) Lars 13 years Lisbet 12 years Kare 9 years Home address Asker, Norway Date of departure Still in the Philippines Compensation for services rendered in the Philippines P4,500.00 Monthly "4. Odd A. Barlindhaug Position Adm. Officer Birth date May 25, 1944 Date of arrival in the Philippines July 27, 1971 Passport No. and date and place of issue B-134267-42 Asker & Baerum Police District Civil Status Married Name of wife and dependents with ages Erlin Barlindhaug (26 years) Home address Dieksvei 11 1322 Lysaker, Norway Date of departure July 8, 1972 Compensation for services rendered in the Philippines P4,500.00 Monthly." It is represented that the above-named persons, all Norwegian citizens, are expatriate personnel of your client, the Norconsult A. S., a Norwegian firm of consulting engineers, architects and economists; that said persons have/stayed in the Philippines for an aggregate period of more than one hundred eighty (180) days in a calendar year, performed technical services therein for same period, and are being paid the corresponding compensation for such services in Philippine currency. Section 22 (a) of the Tax Code as amended by Republic Act No. 5325 provides that there shall be levied, collected, and paid for each taxable year upon the entire net income received from all sources within the Philippines by every non-resident alien individual engaged in trade or business within the Philippines the tax imposed by Section twenty-one: Provided, That for purposes of this Title, a non-resident alien individual who shall come to the Philippines and stay therein for an aggregate period of more than one hundred eighty days during any calendar year shall be deemed a non-resident alien doing business in the Philippines, the provision of Section eighty-four (f) of this Code to the contrary notwithstanding . (Emphasis supplied) In view thereof, and considering that Messrs. Finborud, Sverdrup, Landfald and Barlindhaug have stayed in the Philippines for an aggregate period of more than one hundred eighty (180) days during each calendar year, starting from the date of their arrival in the Philippines, which are, on August 8, 1971, August 29, 1971, October 2, 1971 and July 27, 1971, respectively, up to the present, this Office is of the opinion as it hereby holds that Messrs. Finborud, Sverdrup, Landfald and Barlindhaug are non-resident aliens engaged in trade or business in the Philippines and, therefore, they are required to file Philippine income tax returns, and are subject to Philippine income tax at the rates imposed by Section 21 of the Tax Code on their entire net income received from all sources within the Philippines. cdt Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue