BIR Ruling [DA-177-98]

May 4, 1998 BIR RULING [DA-177-98] Luisita Realty Corporation JCS Building 119 de la Rosa Street Legaspi Village, Makati City Attention: Mr . Emmanuel G . Cochico Corporate Secretary Gentlemen : This refers to your letter dated March 11, 1998 requesting for the issuance of a certificate of exemption from the creditable withholding tax of 1% on income payments made to you as prescribed under Revenue Regulations No. 12-94. cdpr Documents submitted show that you are a BOI-registered corporation with Certificate of Registration No. 97-1956 dated October 7, 1997 as a new operator of industrial community on a non-pioneer status having pioneer incentives enjoying an income tax holiday for six (6) years beginning from the last quarter of 1997 or actual start of commercial operation, whichever comes first. 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 provision of the Omnibus Investment Code of 1987, as amended. Such being the case, the income payments made to you within a period of six (6) years beginning from the last quarter of 1997 or actual start of commercial operations, whichever comes first, shall not be subject to the 1% expanded creditable withholding tax prescribed in Revenue Regulations No. 12-94. (BIR Ruling No. 50(b)/000-00/163-94 dated December 2, 1994; UN 339-94 dated December 6, 1994) This ruling is issued on the basis of the foregoing representations. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. prcd Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)