BIR Ruling [DA-493-04]

September 16, 2004 BIR RULING [DA-493-04] Maritime Industry Authority PPL Bldg., 1000 U.N. Avenue Ermita, Manila Attention: Atty. Gloria J. Victoria-Baas Deputy Administrator for Planning Gentlemen : This refers to your letter dated September 13, 2004 requesting this Office to comment on the draft Memorandum Circular (MC) on the "RULES AND REGULATIONS TO IMPLEMENT REPUBLIC ACT No. 9301, "AN ACT AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT No. 7471, ENTITLED `AN ACT TO PROMOTE THE DEVELOPMENT OF PHILIPPINE OVERSEAS SHIPPING' AND FOR OTHER PURPOSES." Except for the number of years mentioned in Section IV (b) which was reduced from 10 years to 7 years, Section IV of the draft MC which contains the exemption of Philippine Shipping Enterprise from payment of income tax is substantially the same provision as provided in Section 7 of Republic Act No. 7471. It is worthy to note that R.A. No. 7471 has been implemented by Revenue Regulations No. 15-93. Since there is no substantial change in the aforesaid provision as a consequence of the amendment by R.A. 9301, this Office believes that the draft MC would be acceptable to the Bureau of Internal Revenue. Furthermore, the prescription of requirements for exemption under Section V of the said draft is also found to be reasonable. cEAaIS For your information. (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group