BIR Ruling [DA-060-02]

April 01, 2002 BIR RULING [DA-060-02] 57 72-99 Gulf Oil Philippines, Inc. 1804 Herrera Tower Herrera corner Valero Streets Salcedo Village, Makati City Attention: Ms. Marlene L. Carrera Financial and Logistics Controller Gentlemen : This refers to your letter dated May 24, 2001 requesting for a Certificate of Tax Exemption pursuant to Revenue Regulations No. 2-98, as amended by Revenue Regulations No. 6-2001 on account of your registration with the Board of Investment (BOI) under Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987." It is represented that GULF OIL Philippines, Inc. (GOPI) is a joint venture between the Philippine National Oil Company and GULF International Lubricants Ltd.; that it is registered with the Board of Investments (BOI) as New Industry Participant with New Investment in the Production of Lubricating Base Oils under R.A. 8479 on a Non-Pioneer Status under Certificate of Registration No. 2001-012 dated January 25, 2001; and that you are enjoying a six-year income tax holiday incentive from January 25, 2001 until January 25, 2006. 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 Investments Code of 1987. Accordingly, since GULF OIL Philippines, Inc. is a BOI-registered enterprise, enjoying exemption from payment of income taxes pursuant to the provisions of Section 39(a)(1) of the Omnibus Investments Code of 1987, for a period of six (6) years reckoned from January 25, 2001, 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. 072-99 dated March 11, 1999 ) 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 as null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal & Inspection Group