BIR Ruling

February 10, 1976 Miss Victoria J. Regala c/o Alemar's 769 Rizal Ave., Manila M a d a m : In reply to your letter dated February 11, 1975, I have the honor to inform you that the 3% royalties earned by foreign authors, publishers and copyright proprietors under Presidential Decree No. 285 are subject to the withholding tax at the rate of 30% in the case of an individual, and 35% in the case of a corporation, of the gross income derived by the individual or corporation from sources within the Philippines, pursuant to Sections 22(b) and 24(b)(1) in relation to Section 53(b)(1) and 2 all of the Tax Code, as amended. Presidential Decree No. 285 does not provide for any tax exemption. cdtech Very truly yours, CONRADO P. DIAZ Acting Commissioner of Internal Revenue TAN-1182-568-4 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."