BIR Ruling [DA-047-98]

February 9, 1998 BIR RULING [DA-047-98] Rapid Forming Corporation 9th Floor, The Taipan Place Emerald Avenue, Ortigas Center Pasig City Attention: Mr . Donnan E . De La Rosa Treasurer Gentlemen : This refers to your letter dated October 21, 1997 requesting exemption from the expanded withholding tax on income payments to you being a Board of Investment (BOI) registered company. It is represented that you are registered with the Board of Investment as a New Producer of Roll Formed Purlins, Channels and Angles (for socialized housing projects) under Certificate of Registration No. DP96-095 dated June 25, 1996 and that under the terms of your registration, you are entitled to an income tax holiday for four (4) years from January, 1997. In reply, please be informed that Section 4(b)(2) of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94, provides that income payments to "persons enjoying exemptions from payment of income taxes pursuant to the provisions of the Omnibus Investments Code of 1987, as amended" shall be exempt from the expanded withholding tax. Such being the case, and since as represented, you are registered with the BOI as a New Producer of Roll Formed Purlins, Channels and Angles (for socialized housing projects) enjoying an income tax holiday for four (4) years from January, 1997, income payments to you shall be exempt from the expanded withholding tax under Section 4(b)(2) of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94. cdta 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. (BIR Ruling No. 057-95 Dated March 16, 1995). Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)