BIR Ruling [DA-387-98]

August 24, 1998 BIR RULING [DA-387-98] Ultra Dong Shin Corporation 533 Commonwealth Avenue Quezon City Attention: Ms . Carmencita Q . Pe Finance & Administrative Manager Gentlemen : This refers to your letter dated March 16, 1998 requesting for the issuance of a certificate of exemption from the payment of income tax and/or creditable withholding tax. casia It is represented that you are a Board of Investments (BOI) registered enterprise with Certificate of Registration No. EP96-215 dated September 24, 1996 on a non-pioneer status as defined under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987. One of the incentives provided by said Code is an income tax holiday of four (4) years from March 1997 or from actual start of commercial operation, whichever comes first, but in no case earlier than the date of registration. In reply, please be informed that pursuant to Section 2.57.5(B)(2) of Revenue Regulations No. 2-98, implementing Section 57(B) of the Tax Code of 1997, the withholding tax prescribed in said Regulations shall not apply to persons enjoying exemption from payment of income taxes 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 taxes for a period of four (4) years from March 1997 or from the actual start of commercial operations, whichever comes first, 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 payment of income tax and creditable withholding tax imposed under Revenue Regulations No. 2-98 on income payments received by your company for a period of four (4) years up to March 2001. (BIR Ruling No. 163-94 dated December 2, 1994) 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. LLpr Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)