BIR Ruling [DA-238-04]

May 7, 2004 BIR RULING [DA-238-04] RR 2-98 138-98 Philippine Amusement & Gaming Corporation PAGCOR HOUSE, 1330 Roxas Boulevard Ermita, Metro Manila Attention: Ms. Armi-Corazon A. Braganza Managing Head, Auxiliary Audit Department Gentlemen : This refers to your letter dated July 2, 2002 requesting for a ruling on the proper treatment of withholding taxes on income payments made to lessors of audio-visual equipment. It is represented that your Casino Filipino branches make periodic payments to lessors of audio-visual equipment; that your accounting office withholds no taxes because this type of income payment is not included among the taxable items enumerated in Sec. 2.57.2. of Revenue Regulations No. 2-08(E)(l-4), as amended by RR 6-2001; and that your accounting office further states that this type of income payment may be subjected only to withholding of creditable value-added tax based on Sec. 4.114 of 2-98 and Sec. 4-102-1 (3) of RR 7-95 on Consolidated VAT regulations. In reply, please be informed that Section 2.57.2 of Revenue Regulations No. 2-98, as amended by Revenue Regulations No. 6-2001, as amended, specified each class of payee whose income payments is subject to creditable withholding tax. Lessors of audio-visual equipment are not included therein. It has been a rule on statutory construction that the mention of one thing implies the exclusion of another. Therefore, considering that lessors of audio-visual equipment are not among those expressly enumerated under the aforecited Revenue Regulations, the same shall be exempt from the payment of 1% creditable withholding tax. 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. SDaHEc Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group