BIR Ruling [DA-116-97]

March 19, 1997 BIR RULING [DA-116-97] Atty. Josefina C. Patio Unit 12, Star Centrum Condominium Sen. Gil Puyat Ave., Makati City M a d a m : This refers to your follow-up letter dated March 3, 1997 in relation to your letter dated February 25, 1997 requesting for a ruling in behalf of your client, FIMA REALTY CORPORATION to the effect that it is exempt from the payment of income tax and consequently from creditable expanded withholding tax. prll Documents submitted to this Office disclosed that FIMA REALTY CORPORATION is a domestic corporation duly registered with the Securities and Exchange Commission (SEC) under Philippine laws; that it is primarily engaged in the development of industrial estates, viz, Dasmarias Technopark located in Dasmarias, Cavite and that on November 13, 1996, it was granted by the Board of Investments (BOI) the Certificate of Registration No. 96-306 which entitles it to enjoy an Income Tax Holiday for four (4) years reckoned from November 1996 which was the original date of its commercial operation as stated in the General Terms and Conditions of the Certificate of Registration. In reply, please be informed that since FIMA REALTY CORPORATION is a BOI registered enterprise entitled to an Income Tax Holiday pursuant to Sec. 1 of R.A. 7918 (An Act Amending Art. 39, Title III of E.O. 226, otherwise known as the Omnibus Investments Code of 1987, as amended), it is exempt from income tax and consequently from the creditable expanded withholding tax prescribed under Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94, implementing Section 50(b) of the Tax Code, as amended. 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. 038-95 dated February 16, 1995) aisadc Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)