AJMR Port Services Corporation

February 4, 2010 BIR RULING [DA-(IL-002) 023-10] RR 2-98; BIR Ruling No. DA-349-04 AJMR Port Services Corporation Km. 20, Tibungco Davao City Attention: Mr. Victor S. Mercado, Jr. Corporate Controller Gentlemen : This refers to your letter dated August 15, 2008, indorsed to this Office by Regional Director Marcelinda Omila-Yap of Revenue Region 19, Davao City, requesting for a certificate of tax exemption. Documents show that AJMR Port Services Corporation ("AJMR" for brevity) is a corporation duly registered with the Board of Investments as a "New Operator of Logistics Cargo Terminal Facility" on a non-pioneer status under Certificate of Registration No. XI 2006-116 dated September 27, 2006. AJMR has been granted a four-year income tax holiday incentive from October 2006 or from the actual start of operations, but not earlier than its date of registration. In reply, please be informed that under Section 2.57.5 (B) (2) of RR No. 2-98, as amended, 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 AJMR 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 four (4) years reckoned from October 2006 or from the actual start of operations, this Office is of the opinion as it hereby holds, that it is exempt from the payment of the creditable withholding tax imposed under RR No. 2-98, as amended, on income payments received by it during the aforementioned period with respect to its registered activity. caCEDA 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