BIR Ruling [DA-217-00]

April 11, 2000 BIR RULING [DA-217-00] RR 2-98 DA-016-99; DA-217-2000 Freezing Station, Inc. KM 11-800 Marcos Highway Barrio Mayamot, Antipolo, Rizal Attention: Ms . Ma . Milagros F . Padernal Vice-President-Finance and Administratio n Gentlemen : This refers to your letter dated May 6, 1999 requesting for a Tax Exemption Certificate pursuant to Revenue Regulations No. 2-98 on account of your registration with the Board of Investment (BOI) under Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987." It is represented that Freezing Station, Inc. has been registered with the BOI as a new operator of cold storage facilities on a non-pioneer status under Certificate of Registration No. 96-387 dated February 6, 1997; and that you are entitled to an Income Tax Holiday for four (4) years pursuant to No. 4(a) of the Specific Terms and Conditions accompanying your registration, viz: "4. The enterprise shall be entitled to the following incentives: a. Income Tax Holiday for a period of four (4) years starting October 1997 or actual start of commercial operations, whichever comes first, but in no case earlier than the date of registration: Date of Filing: Within one (1) month from filing of the final ITR with BIR" In reply, please be informed that Section 2.57.5(B)(2) of Revenue Regulations No. 2-98 provides that income payments to "corporations registered with the Board of Investments and enjoying exemption from the income tax provided by Republic Act No. 7916 and the Omnibus Investment Code of 1987" shall be exempt from the creditable withholding tax. LibLex Such being the case, income payments to Freezing Station, Inc. shall be exempt from the creditable withholding tax under Revenue Regulations No. 2-98, implementing Section 57(B) of the Tax Code of 1997 for a period of four (4) years starting October, 1997. (BIR Ruling No. DA-016-99 dated January 11, 1999) 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. cdll Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)