BIR Ruling [DA-121-96]

March 26, 1996 BIR RULING [DA-121-96] Central Azucarera Don Pedro CG Building, 101 Aguirre St. Legaspi Village Makati City Attention: Ms. Asuncion S. Aguilar VP-Finance & Treasurer Gentlemen : This refers to your letter dated May 9, 1995 stating that your company is registered with the Board of Investments as a new domestic producer of refined sugar and molasses (Refinery Operation [RO] on a preferred non-pioneer status under the Omnibus Investments Code of 1987, otherwise known as Executive Order No. 226. Based on the foregoing, you now in effect request for exemption from the creditable withholding tax prescribed under Revenue Regulations No. 12-94. In reply, please be informed that under 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 payment of income tax pursuant to the provisions of the Omnibus Investments Code of 1987, as amended. EcHTCD Accordingly, since you are registered with the BOI and enjoying exemption from the payment of income tax for a period of four (4) years starting February 1994 until January 1998 or from the actual start of commercial operation whichever comes first but not earlier than the date of registration, 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. 6-85 as amended by Revenue Regulations 12-94 on income payments received by your company. (BIR Ruling No. 163-94 dated December 2, 1994) Very truly yours, (SGD.) ALICIA P. CLEMENO Assistant Commissioner (Legal Service)