BIR Ruling [DA-553-99]

September 23, 1999 BIR RULING [DA-553-99] Coresteel Industries Pilipinas Incorporated Phividec Industrial Estate Sta. Ana, Tagoloan, Misamis Oriental Attention: Mr . Doel A . Vesagas Finance Manager & Treasurer Gentlemen : This refers to your letter dated June 10, 1999 requesting exemption from the 1% creditable withholding tax on income payments to you since you are a BOI registered enterprise. llcd Documents submitted show that you are a BOI-registered enterprise with Certificate of Registration No. EP 96-181 dated October 22, 1996; that you are a new producer of Cold Reduced Sheet in Coil on a pioneer status enjoying an income tax holiday for a period of six (6) years reckoned from the start of your commercial operation in January 1998. In reply, please be informed that Section 2.57.5(B)(2) of Revenue Regulations No. 2-98, provides that the withholding of creditable withholding tax therein prescribed shall not apply to income payments to corporation registered with the Board of Investments and enjoying exemption from payment of income tax provided by R.A. No. 7916 and the Omnibus Investment Code of 1987. Such being the case, and since you are a BOI registered enterprise enjoying an income tax holiday for a period of six (6) years from the start of your commercial operation, income payments made to you from January 1998, the start of your commercial operation, until December 2003 shall not be subject to the 1% creditable withholding tax prescribed in Revenue Regulations No. 2-98. (BIR Ruling No. 50(b)/000-00/163-94 dated December 2, 1994; UN 339-94 dated December 6, 1994) Moreover, you can file a claim for tax credit or refund of the 1% creditable withholding tax which had been withheld by your customers for the years 1998 and 1999. LibLex This ruling is issued on the basis of the foregoing representations. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)