BIR Ruling [DA-674-99]

December 10, 1999 BIR RULING [DA-674-99] Adriatico Consortium, Inc. M. Adriatico cor. Gen. Malvar Street Malate, Manila Attention: Mr . William Siy President Gentlemen : This refers to your letter dated September 13, 1999 requesting for an exemption from the 1% creditable withholding tax on the income payments made to your company. LibLex It is represented that your company, Adriatico Consortium, Inc. is registered with the Board of Investments on March 3, 1998 under Certificate of Registration No. 97-336 on a non-pioneer status as a new operator of tourist accommodation facilities (hotel) with a two hundred thirty six (236) rooms; and that the aforementioned project is entitled to a four (4) year income tax holiday incentive from the start of its commercial operations. In reply, please be informed that Section 2.57.5(B)(2) of Revenue Regulations No. 2-98 provides that income payments to "corporations registered with the Board of Investments and enjoying exemption from the income tax provided by Republic Act No. 7916 and the Omnibus Investment Code of 1987" shall be exempt from the creditable withholding tax. LexLib Such being the case, income payments to Adriatico Consortium, Inc. shall be exempt from the creditable withholding tax under Revenue Regulations No. 2-98, implementing Section 57(B) of the Tax Code of 1997. (BIR Ruling No. DA-016-99 dated January 11, 1999). 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. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)