Dewey & Felix

February 26, 2009 BIR RULING [DA-(C-030) 125-09] DA327-98 Dewey & Felix Architects Rm. 515 Peninsula Court Building 8735 Paseo de Roxas corner Makati Avenue Makati City Attention: Arch. Felix W. Ngo Managing Partner Gentlemen : This refers to your letter dated January 3, 2008 requesting for a Certificate of Exemption from withholding tax on your professional fees pursuant to Section 2.57.5 (B) (4) of Revenue Regulations No. 2-98, as amended. It appears that you are a general professional partnership duly registered with the Securities and Exchange Commission (SEC) engaged in the general practice of architectural services, project development, interior designing and consultancy to the public. In reply thereto, please be informed that your general professional partnership formed for the purpose of practicing common profession as architects is exempt from income tax pursuant to Section 26 of the Tax Code of 1997. Accordingly, payments to said partnership for professional services rendered are exempt from the withholding tax pursuant to Section 2.57.5 (B) (4) of Revenue Regulations No. 2-98, as amended. However, the partners shall be individually liable for income tax based on their respective share in the net profits of the general professional partnership during the taxable year, whether distributed or not, and the tax shall be paid in accordance with Section 24 (A) in relation to Section 74 (A) of the Tax Code of 1997. Thus, income payments made periodically to the partners, such as drawings, advances, sharings, allowances, stipends, etc. shall be subject to the 15%, if the gross income for the current year exceeds P720,000; and 10%, if otherwise, creditable withholding tax pursuant to Section 2.57.2 (H), supra. HASDcC 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, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service