BIR Ruling [DA-107-96]

March 12, 1996 BIR RULING [DA-107-96] Upson Industries Corporation 292 Susano Road, Camarin Kalookan City Attention: Ms . Karolyn L . Fernando Treasurer Gentlemen : This refers to your letter dated August 9, 1995 requesting for the issuance of a certificate of exemption from the creditable expanded withholding tax pursuant to Revenue Regulations No. 12-94. cd Documents submitted show that Upson Industries Corporation, a BOI registered enterprise with Certificate of Registration No. EP-94-512, is a New Producer on a non-pioneer status under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987; and that one of the incentives provided under the said Code is an income tax holiday of four (4) years starting August, 1995 or from the date of actual start of operation, whichever comes first, but in no case earlier than the date of registration. In reply, please be informed that pursuant to Section 4(b)(2) of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94 implementing Section 50(b) of the Tax Code, as amended, the withholding tax prescribed in these regulations shall not apply to income payments to persons enjoying exemption from the payment of income taxes pursuant to the provisions of the Omnibus Investments Code of 1987, as amended. Accordingly, since you are registered with the BOI and enjoying exemption from the payment of income tax for a period of four (4) years from August, 1995 or from the actual start of commercial operations whichever comes first in accordance with the Omnibus Investments Code of 1987, this Office is of the opinion as it hereby holds that you are exempt from the creditable expanded withholding tax imposed under Revenue Regulations No. 12-94 on income payments received by your company. (BIR Ruling No. 163-94 dated December 12, 1994) cdta Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)