BIR Ruling [DA-229-96]

July 5, 1996 BIR RULING [DA-229-96] Fantasia Filipina Resorts, Inc. P.O. Box 7773 NAIA Airmail Distribution Pasay City Attention: Mr . Benito L . Mabeza Comptroller Gentlemen : This refers to your letter dated June 6, 1996 stating that you have suffered net operating losses of P100,088,200 in 1995 and P916,950,774 in 1994. In connection therewith, you are requesting for exemption from the .5% withholding tax on payments made by credit card companies. In reply, please be informed that pursuant to Section 3(d) of Revenue Regulations No. 12-94 amending Revenue Regulations No. 6-85, otherwise known as the "Expanded Withholding Tax Regulations", as further amended by Revenue Regulations No. 16-94 stating "SEC. 3. Section 4 of Revenue Regulations No.-85 is hereby amended to read as follows: SEC. 4. Exemption from Withholding The withholding of tax prescribed in these regulations shall not apply to income payments in the following cases: xxx xxx xxx (d) In the case of a payee who suffered net operating losses during the immediately preceding two(2) tax years; xxx xxx xxx" this Office is of the opinion as it hereby that you are exempt from the .5% withholding tax on payments made by credit card companies for the year 1996. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, the facts turned out to be different, then this ruling shall be considered null and void. (BIR Rulings No. 126-94 dated August 15, 1994) Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)