BIR Ruling [DA-251-97]

July 28, 1997 BIR RULING [DA-251-97] Pilipinas Shell Petroleum Corporation Shell House, 156 Valero Street Salcedo Village, Makati City Attention: Mr. Emmanuel V. Mendoza, Jr. Fiscal Services Manager Gentlemen : This refers to your letter dated April 29, 1997, requesting that the period of your exemption from the creditable expanded withholding tax granted pursuant to unnumbered ruling (UN-352-94) dated December 14, 1994, be moved from July 1994 to November 1994 to expire on October 31, 1997. It appears that the basis of the said unnumbered BIR Ruling exempting your income payments from the 1% creditable expanded withholding tax imposed by Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94, is that you are a BOI-registered industry enjoying exemption from income tax as an Expanding Producer of Petroleum Products on a pioneer status; that at the time the exemption was granted by this Office, the reckoning period of your 3-year income tax holiday as originally granted by BOI is July 1994; and that subsequently, BOI amended your Certificate of Registration No. DP91-252 by changing the reckoning period of your income tax holiday from July 1994 to November 1994. In reply, please be informed that on the basis of the foregoing facts and documents submitted, this Office has decided to grant your aforesaid request. Accordingly, the last paragraph of unnumbered BIR Ruling UN-352-94 dated December 14, 1994 is hereby amended to read as follows: IcSHTA "Accordingly, since you are registered with the BOI and enjoying exemption from the payment of income taxes, this Office is of the opinion as it hereby holds that you are exempt from the creditable expanded withholding tax imposed under Revenue Regulations No. 6-85 as amended by Revenue Regulations No. 12-94 on income payments received by your company for three (3) years reckoned from November, 1994 or from the actual start of commercial operation, whichever comes first, brut not earlier than the date of registration. (BIR Ruling No. 163-94 dated December 2, 1994.)" Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV OIC, Assistant Commissioner (Legal Service)