BIR Ruling

June 28, 1976 Philippine Exchange Company, Inc. PNB Building Escolta, Manila Attention: Mr . Argani O . Saldua Corporate Auditor Gentlemen : This refers to your letter dated November 20, 1975 requesting our opinion and/or ruling as to the applicability or non-applicability of BIR Revenue Regulation No. V-40, Series of 1954. aisa dc It is represented that you, a subsidiary corporation of the Philippine National Bank, handle exclusively the export of Philippine Raw Sugar to the United States and world markets and that in the pursuit of this business activity, you have availed of the facilities of the Ormoc Bulk Sugar Terminal, which is owned and operated by Ormoc Sugar Co., Inc., in the loading of your export sugar; that as a consequence, the Ormoc Sugar Company, Inc., charged you a terminal fee of P1.00 per picul of raw sugar loaded on board awaiting vessels. Based on the foregoing representations, I have the honor to inform you that in accordance with Revenue Regulations 21-67 dated May 2, 1967 which superseded Revenue Regulations No. V-40, S. of 1954, as a government controlled corporation, you should withhold from the amount you are required to pay the Ormoc Sugar Company, Inc., as a terminal fee for the use of its bulk sugar terminal, the 3% contractor's tax as prescribed by Section 191 of the Tax Code. acd Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3