BIR Ruling

April 24, 1974 Peroxide Philippines Corporation P. O. Box 324, Greenhills Post Office Rizal Attention: Mr . Francisco J . Buencamino Finance Manager Gentlemen : In reply to your letter of even date to the Undersecretary of Finance Pedro Almanzor, I have the honor to inform you that the tax credit granted you by the Board of Investments cannot be applied in payment of the amount of P21,383.69 as withholding tax on your interest payment on account of your foreign obligation. It should be noted that the tax credit granted to you may be applied only in payment of tax liabilities due from you. Accordingly, the same cannot be applied in payment of the withholding tax which, in reality, is a tax due from your foreign creditor. aisa dc Furthermore, the aforesaid tax credit cannot as yet be utilized in payment of the taxes due from you because the same has not yet been approved by this Office. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5