BIR Ruling

June 29, 1970 Mr. Maximo de Luna Asst. Provincial Treasurer Boac, Marinduque S i r : This refers to your letter dated June 17, 1970 requesting a ruling as to whether or not the income tax payment made by the Marcopper Mining Corporation of Sta. Cruz, Marinduque, in the total amount of P2,394,268.09 should be treated as withholding of corporate income tax at source or withholding of tax on wages. It appears that the Marcopper Mining Corporation remitted certain interest payments and insurance premiums to companies abroad. However, before such remittances were made, Marcopper Mining Corporation as withholding agent, deducted and withheld the corresponding income tax thereon pursuant to Section 54 in relation to Section 53 both of the Tax Code. The Collection Agent in Sta. Cruz, Marinduque, reported the income tax withheld as withholding tax on wages. In view thereof, and considering that the interests payments and insurance premiums which were remitted by the Marcopper Mining Corporation are subject to the 35% withholding tax prescribed by Section 54 in relation to Section 53 both of the Tax Code, this Office is of the opinion and so holds that the income tax payments in the total amount of P2,394,268.09 should be correctly classified as withholding of corporate income tax at source and not as withholding tax on wages. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue