BIR Ruling [DA-022-97]

January 15, 1997 BIR RULING [DA-022-97] Jose Nissin Diamond Die Corporation of the Philippines Lot 1 Mambungan, Antipolo, Rizal c/o J1708 Amang Rodriguez Avenue Santolan, Pasig, Metro Manila Attention: Ms . Rebecca M . Molina Accounting Manager Gentlemen : This refers to your letter dated August 16, 1996 requesting in effect, exemption of your income payments from the creditable expanded withholding tax. It is represented that you are registered with the Board of Investments (BOI) as a new domestic producer of diamond dies on a preferred pioneer status with Certificate of Registration No. DP-93- * dated October 15, 1993, pursuant to Executive Order No. 226 otherwise known as the Omnibus Investments Code of 1987; that under the terms of your registration, you are entitled to an income tax holiday for six (6) years from November 1993 or from the date of actual operation whichever comes first but not earlier than the date of registration; and that your commercial operations started in April 1994. In reply, please be informed that under Section 4(b)(2) of Revenue Regulations No. 6-85 as amended by Revenue Regulations No. 12-94, income payments to persons enjoying exemption from payment of income taxes pursuant to the provisions of the Omnibus Investments Code of 1987 shall be exempt from the creditable expanded withholding tax. Accordingly, as a BOI-registered new domestic producer of diamond dies and enjoying exemption from income tax for six (6) years from April 1994, income payments made to you by your customers, notably International Wiring System (Phils.) Corp., are exempt from the creditable expanded withholding tax imposed under said Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94. (BIR Ruling No. 057-95 dated March 16, 1995) As regards your request for assistance on how to secure the refund of the taxes withheld from you by your customers, please be informed that you must file with the Appellate Division, this Bureau, a written claim for refund of the tax/es withheld within two (2) years from the date of actual remittance thereof, pursuant to Section 204 (3) of the Tax Code, as amended by Republic Act No. 7646. This ruling is being issued on the basis of your representations of facts. If upon investigation it will be disclosed that the facts are different, then this ruling will be considered null and void. cdlex Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: (SGD.) ALICIA L. TOMACRUZ Head Rev . Executive Assistant (Legal Service)