BIR Ruling

October 15, 1975 Rassagi Transport Corporation Aurora Blvd. corner P. Burgos St. Cubao Quezon City Attention: Mr . Rudolfo N . Echague Gentlemen : This refers to your letter of even date requesting advice as to the rate of tax payable on the interest which you will remit to your foreign financier, an Iranian Bank. In reply, I have the honor to inform you that pursuant to Section 24(b)(1) of the Tax Code, as amended by Presidential Decree No. 131, interest on foreign loans earned beginning from January 1, 1973 shall be subject to 15% tax. Accordingly, you, as withholding agent, should pay 15% income tax on the interest payable to the Iranian Bank, which should be returned and paid in the same manner and subject to the same conditions provided in Section 54 of the Tax Code. aisa dc Very truly yours, (SGD.) EFREN I. PLANA Acting Commissioner of Internal Revenue TAN 1456-040-3