BIR Ruling [DA-422-99]

July 20, 1999 BIR RULING [DA-422-99] 39 (a) (1) 061-94 Philippine Townships, Inc . 6/F RFM Corporate Center cor. Pioneer and Sheridan Streets Mandaluyong City Attention: Mr. Lauro B. Ramos Senior Vice President CFO Gentlemen : This refers to your letter dated July 12, 1999 stating that you are engaged primarily in the real estate business, specifically in the development and operation of industrial state; that you have a project known as the Philtown Industrial Estate Project located in the municipality of Tanauan, Batangas; that you are registered with the Board of Investments under Certificate of Registration No. 97-300 dated December 29, 1997 as a non-pioneer new operator of industrial estate; that you are entitled to an income tax holiday for four (4) years from January 1998 or actual start of commercial operation whichever comes first but not earlier from the date of registration. In connection therewith, you are requesting a ruling to the effect that your sale of industrial lots within the industrial estate in Tanauan, Batangas, is exempt from the creditable withholding tax. In reply thereto, please be informed that your sale of industrial lots enjoys a 4-year income tax holiday from the date of your registration with the Board of Investments pursuant to Section 39(a)(1) of the Omnibus Investments Code. Consequently, for the same period, you are also exempt from the creditable withholding tax on your sales of industrial lots as an exception to Revenue Regulations No. 2-98 (BIR Ruling No. 061-94 dated February 11, 1994). THIASE Very truly yours, (SGD.) SIXTO S. ESQUIVIAS, JR. Deputy Commissioner Legal and Enforcement Group