BIR Ruling [DA-289-96]

July 30, 1996 BIR RULING [DA-289-96] Republic-Asahi Glass Corporation 6th Floor, Republic Glass Building 196 Salcedo Street, Legaspi Village Makati City Attention: Mr. Rolando R. Abratique Senior Manager Gentlemen : This refers to your letter dated February 15, 1996 stating that the Board of Investments in its Management Committee Meeting last April 25, 1995 approved your application for a one-year extension of Income Tax Holiday Incentive for your Project under Certificate of Registration No. DP-88-675, from November, 1996 to October, 1997 as per Letter dated April 26, 1995. Based on the foregoing, you now in effect request for an exemption from the creditable expanded withholding tax prescribed under Revenue Regulations No. 12-94. In reply, please be informed that under Section 4 (b) (2) of Revenue Regulations No. 6-85 as amended by Revenue Regulations No. 12-94, implementing Section 50 (b) of the Tax Code, as amended, the withholding tax prescribed in these regulations shall not apply to income payments to persons enjoying exemption from payment of income tax pursuant to the provisions of the Omnibus Investments Code of 1987, as amended. Accordingly, since you are registered with the BOI and enjoying exemption from the payment of income tax for a period of one (1) year from November, 1996 up to October, 1997, in accordance with the Omnibus Investments Code of 1987, 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. (BIR Ruling No. 163-94 dated December 2, 1994) Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: (SGD.) ALICIA L. TOMACRUZ Head Rev. Executive Assistant Legal Service