BIR Ruling [DA-066-98]

February 26, 1998 BIR RULING [DA-066-98] Sycip Gorres Velayo & Co. 6760 Ayala Avenue Makati City Attention: Atty . C . P . Noel Tax Division Gentlemen : This refers to your letter dated February 3, 1998 requesting on behalf of your client, Duvaz Corporation , for the issuance of a Certificate of Exemption from the creditable expanded withholding tax imposed by Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94. cdll It appears from the Financial Statements submitted that Duvaz Corporation incurred net operating losses during the taxable years 1996 and 1997 in the amounts of P27,948,770.00 and P222,222,950.00, respectively. In reply, please be informed that since Duvaz Corporation suffered net operating losses during the immediately preceding tax years, 1996 and 1997, income payments made to it are exempt from the creditable expanded withholding tax pursuant to Section 4(d) of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94, for the year 1998. (BIR Ruling No. 126-94 dated August 15, 1994) 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. 126-94 dated August 15, 1994) llcd Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)