BIR Ruling [DA-126-97]

March 25, 1997 BIR RULING [DA-126-97] Joaquin Cunanan & Co. 6th Flr., BA-Lepanto Building 9747 Paseo de Roxas Makati City Attention: Mr . Jose S . Tayag, Jr . Tax Division Gentlemen : This refers to your letter dated February 27, 1996 stating that your client, Columbia Tri-Star Film Distributors, Inc. has been granted availment of the 10% preferential tax treaty rate on royalties/fees paid to them effective five (5) years from January 5, 1990 or up to January 5, 1995 per unnumbered BIR Ruling dated January 11, 1995; and that the Distribution Agreement between the same parties have been extended five years from January 5, 1995. Based on the foregoing, you now request for confirmation of your opinion that the approval of the availment of the preferential tax treaty rate of 10% is applicable to period covered by such extension or up to January 5, 2000. In reply, please be informed that your opinion is hereby confirmed pursuant to Article 13 (2) (b) (iii) of the RP-US Tax Treaty, in relation to Article IX (1) of the RP-Denmark Tax Treaty which provides that royalties are subject to 10% tax rate which should be withheld before actual remittance. This approval shall be valid for five (5) years effective January 5, 1995, unless otherwise earlier revoked by this Office. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue