BIR Ruling [DA-057-96]

February 2, 1996 BIR RULING [DA-057-96] Castillo Laman Tan Pantaleon and San Jose Law Offices The Valero Tower, 122 Valero St. Salcedo Village, 1227 Makati City Attention: Attys . Eva Policar-Bautista Ma . Victoria D . Sarmiento and Alvin O . Geli Gentlemen : This refers to your letter dated September 20, 1995 requesting confirmation of your opinion that since you are a professional partnership engaged in the practice of law you are not subject to the withholding tax on the fees paid to you. In reply thereto, please be informed that your opinion is hereby confirmed. Pursuant to Section 24 (a) of the Tax Code, a tax of 35% is imposed upon the taxable income received during each taxable year from all sources within and without the Philippines of every corporation organized in, or existing under the laws of the Philippines, no matter how created or organized, but not including general professional partnerships. Such being the case, since you are a general professional partnership engaged in the practice of law, fees paid to you are not subject to the withholding tax under Revenue Regulations No. 6-85 as amended, otherwise known as the Expanded Withholding Tax Regulations. (BIR Ruling No. 122-79 dated December 12, 1979) cdtech Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)