BIR Ruling [DA-638-06]

October 27, 2006 BIR RULING [DA-638-06] BIR Ruling No. DA-212-03 Third Millenium Oil Mills, Inc . Rm. 403, CSP Bldg. 815 Quezon Avenue Quezon City Attention: Mr. Nelson S. Lim Vice President/Treasurer Gentlemen : This refers to your request for an amendment of BIR Ruling No. DA-212-2003 dated July 8, 2003 exempting Third Millenium Oil Mills, Inc. from payment of the 1% creditable withholding tax. The pertinent portion of the said ruling is quoted as follows: ". . . 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 operations (August 2001 or actual start of commercial operations), income payments made to you from August 2001, the start of your commercial operation, until December 2006 shall not be subject to the 1% creditable withholding tax prescribe in RevenueRegulationsNo.2-98, as amended . . . ." You now request for confirmation that your Company's exemption from the 1% creditable withholding tax should be up to May 2007 instead of December 2006 per the subject BIR Ruling because the income tax holiday granted to your Company by BOI is until May 2007 and accordingly, seek an amendment of the second paragraph of the above ruling. In reply, please be informed that your request for an amendment of BIR Ruling No. DA-212-2003 dated July 8, 2003 is hereby granted since the amendment would just extend the income incentive of the company as evidenced by the certificate from BOI extending your company's ITH up to May 2007. DCcHIS Accordingly, this office confirms that income payments made to Third Millenium Oil Mills, Inc. from the period June 2001 until May 2007 shall not be subject to the 1% creditable withholding tax prescribed in Revenue Regulations No. 2-98, as amended. This amends BIR Ruling No. DA-212-2003 dated July 8, 2003. 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 as null and void. Very truly yours Commissioner of Internal Revenue By: (SGD.) GREGORIO V. CABANTAC Deputy Commissioner