BIR Ruling [DA-048-04]

February 6, 2004 BIR RULING [DA-048-04] 57 (B); 060-2002 Samar Coco Products Manufacturing Corporation Brgy. Malajog Tinambacan District Calbayog City Western Samar Attention: Mr. Raymond Co Corporate Secretary Gentlemen : This refers to your letter dated September 30, 2003 requesting for exemption from the creditable expanded withholding tax. It is represented that Samar Coco Products Manufacturing Corporation is a corporation duly organized and existing under the laws of the Republic of the Philippines, with plant address located at Brgy. Malajog, Tinambacan District, Calbayog City, Western Samar; that it is duly registered with the Board of Investments (BOI) as an Existing and Expanding Export Producer of Crude and Refined Coconut Oil and Copra Cake under Certificate of Registration No. EP96-242 dated November 7, 1996; and that Samar Coco Products Manufacturing Corporation has been granted by the BOI a one (1) year bonus for income tax holiday for the period beginning November 7, 2002 to November 6, 2003. In reply, please be informed that under Section 2.57.5(B)(2) of Revenue Regulations No. 2-98, as amended by Revenue Regulations No. 6-2001 implementing Section 57(B) of the Tax Code of 1997, the withholding tax prescribed in the said Regulations shall not apply to income payments to persons enjoying exemption from income tax provided by Republic Act No. 7916 and the Omnibus Investment Code of 1987. EaCSTc Accordingly, since Samar Coco Products Manufacturing Corporation is a BOI-registered enterprise, enjoying exemption from payment of income taxes pursuant to the provisions of Section 39(a)(l) of the Omnibus Investment Code of 1987, for a period of one (1) year reckoned from November 7, 2002 to November 6, 2003, this Office is of the opinion as it hereby holds, that it is exempt from the payment of the creditable withholding tax imposed under Revenue Regulations No. 2-98, as amended by Revenue Regulations No. 6-2001 on income payments received by it during the aforementioned period, in connection with its registered activity. (BIR Ruling No. DA-060-2002 dated April 1, 2002) 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.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group