BIR Ruling

June 30, 1975 Messrs. Sycip, Salazar, Feliciano Hernandez and Castillo 3rd Floor, Far East Building Buendia Avenue, Makati Rizal Attention: Atty . Andres Gatmaitan Gentlemen : This refers to your letter dated June 26, 1975 requesting confirmation of the fact that your client, Mitsubishi Metal Corporation is a resident foreign corporation and that, for that matter, dividends it receive from domestic corporations, such as Atlas Consolidated Mining and Development Corporation, are subject to only 8.75% withholding tax. It appears from the documentary evidence submitted that your client was duly registered by the Board of Investment for purposes of R. A. 5455 and that it was also registered with and licensed to engage in business in the Philippines by the Securities and Exchange Commission. Under both registrations, your client was authorized to engage in economic activities in the Philippines, such as conducting surveys, inquiries and investigations to determine the feasibility of its making an investment; conducting liaison work for its home office by providing the latter with shipping, weather and freightage information, credit standing of Filipino businessmen, market surveys and statistics and to act as message center; supervising the procurement of minerals and mineral products for export to Japan; making investments permitted by law; giving financial assistance to local mining enterprises; and rendering of technical advice and assistance to mining companies so that the latter can comply with their contractual commitment to its head office. Evidence further disclosed that your client have already undertaken such economic activities. In reply, I have the honor to inform you that, under the foregoing presentation, your client Mitsubishi Metal Corporation, is unquestionably a resident foreign corporation, and therefore, dividends it receive from domestic corporation, such as Atlas Consolidated Mining and Development Corporation, are subject to only 8.75% withholding tax pursuant to Section 24(d) of the Tax Code, as last amended by Presidential Decree No. 402. aisa dc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 ANNEX 1st Indorsement June 30, 1975 Respectfully forwarded to the Honorable, the Secretary of Finance, Manila, the within letter dated June 11, 1975 of the Philippine Racing Club, Inc., Sta. Ana Park, Makati, Rizal, for appropriate action, it appearing that the subject matter treated therein which refers to liability of said taxpayer to amusement tax on admission is within the jurisdiction of that Department. cdt (SGD.) CONRADO P. DIAZ Deputy Commissioner of Internal Revenue TAN 1102-568-4