BIR Ruling [DA-003-98]

January 8, 1998 BIR RULING [DA-003-98] MM Steel Service Center Corporation Km. 53, Bo. Tulo Calamba, Laguna Attention: Mr. Shohei Sasamoto Exec. Vice-President Gentlemen : This refers to your letter dated October 30, 1997 requesting for the issuance of a Certificate of Exemption from the creditable expanded withholding tax imposed by Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94. It is represented that MM Steel Service Center Corporation is a domestic corporation organized and existing under the laws of the Philippines; and that the company has incurred losses for the past two consecutive years in the amount of P20,005,014 and P48,493.919 for the tax years 1995 and 1996, respectively. In reply, please be informed that since MM Steel Service Center Corporation suffered net losses during the immediately preceding two (2) tax years, 1995 and 1996, as shown in its Comparative Statements of Income for the said years, income payments made to it are exempt from the creditable expanded withholding tax pursuant to Section 4 (d) of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94, for the year 1997. (BIR Ruling No. 126-94 dated August 15, 1994) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV OIC, Deputy Commissioner (Legal & Enforcement Group)