BIR Ruling [DA-546-98]

December 3, 1998 BIR RULING [DA-546-98] Technol Eight Philippines Corp. 127 East Main Avenue Laguna Technopark, Phase V Bian, Laguna Attention: Mr . Hisakazu Usui Treasurer Gentlemen : This refers to your letter dated October 22, 1998 requesting for a Certificate of Tax Exemption pursuant to Revenue Regulations No. 2-98 on account of your registration with the Board of Investment (BOI) under Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987". Documents show that your company is registered with the Board of Investments as a pioneer manufacturer of auto parts and components under Certificate of Registration No. DP 97-231 dated October 21, 1997; and that you are enjoying a six-year income tax holiday incentive from September 1998 until the year 2004. In reply, please be informed that under 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 the said Regulations shall not apply to income payments to persons enjoying exemption from the income tax provided by Republic Act No. 7916 and the Omnibus Investments Code of 1987. Accordingly, since Technol Eight Philippines Corp . is a BOI-registered enterprise, enjoying exemption from payment of income taxes pursuant to the provisions of Section 39(a)(1) of the Omnibus Investments Code of 1987, for a period of six (6) years reckoned from September 1998, this Office is of the opinion, as it hereby holds, that it is exempt from the payment of the creditable withholding tax imposed under Revenue Regulations No. 2-98, on income payments received by it during the aforementioned period. 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 from the date of issuance. (BIR Ruling No. 072-99 dated March 11, 1998) llpr Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)