BIR Ruling [DA-133-00]

March 1, 2000 BIR RULING [DA-133-00] Asian Telecommunications Products, Inc. Luisita Industrial Park San Miguel, Tarlac Attention: Mr . Ramon B . Santos Gentlemen : This refers to your letter dated July 1, 1996 requesting for the issuance of a certificate of exemption from the creditable withholding tax of 1% on income payments made to you as a local supplier of goods. Documents submitted show that you are a BOI-registered enterprise with a Certificate of Registration No. EP-94-482 dated December 8, 1994, as a new domestic producer/manufacturer of communication wires, telephone cables, service drop wires and intercom cables, on a preferred pioneer status; that as a BOI-registered enterprise, you are enjoying income tax holiday for six (6) year; and that you started commercial operations on July 1995. llcd In reply, please be informed that Section 4(b)(2) of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94, provides that the withholding tax therein prescribed shall not apply to income payments to persons enjoying exemption from payment of income taxes pursuant to the provisions of the Omnibus Investment Code of 1987, as amended. As a BOI-registered enterprise, you shall be enjoying exemption from payment of income taxes pursuant to the provisions of Section 39(a)(1) of the Omnibus Investments Code of 1987 until June, 2001. Such being the case, as a local supplier of goods, the income payments made to you shall not be subject to 1% creditable expanded withholding tax prescribed in Revenue Regulations No. 12-94. (BIR Rulings No. 50(b)/000-00/163-94 dated December 2, 1994 and UN 339-94 dated December 6, 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. Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)