BIR Ruling [DA-018-97]

January 14, 1997 BIR RULING [DA-018-97] Angeles Industrial Park, Inc. Nepo Mart Bldg., Plaridel St. Angeles City Attention: Mr . Peter G . Nepomuceno President & General Manager Gentlemen : This refers to your letter dated December 18, 1996 stating that your company is the owner of a 32 hectares developed area located in Calibutbut, Bacolor, Pampanga which was proclaimed as a Special Economic Zone by his Excellency, President Fidel V. Ramos under Proclamation No. 850 dated August 14, 1996; and that in the Certificate of Board Resolution issued by the Philippine Economic Zone Authority under Resolution No. 95-161 it was resolved that you are entitled to an income tax holiday for six years as provided in Executive Order No. 226 otherwise known as the Omnibus Investments Code of 1987. In reply thereto, please be informed that Section 4 (b) (2) of Revenue Regulations No. 6-85 as amended by Revenue Regulations No. 12-94 provides that the withholding tax therein prescribed shall not apply to income payments to persons enjoying exemption from payment of income taxes pursuant to the provisions of the Omnibus Investments Code of 1987, as amended. Accordingly, and since you are entitled to an income tax holiday for six (6) years, you are exempt from the creditable expanded withholding tax pursuant to Section 4 (b)(2) of Revenue Regulations No. 6-85 as amended by Revenue Regulations No. 12-94. (BIR Ruling No. 163-94) casia Very truly yours, ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)