Third Millennium Oil Mills, Inc.

July 30, 2008 BIR RULING [DA-(IL-009) 094-08] E.O. 226; DA-574-2007; DA-212-2003 Third Millennium Oil Mills, Inc. Rm. 403, CSP Building 815 Quezon Avenue Quezon City Attention: Mr. Nelson S. Lim Vice President/Treasurer Gentlemen : This refers to your letter dated February 13, 2008, requesting for confirmation of your opinion that income payments made to your company, Third Millennium Oil Mills, Inc., are exempt from the expanded withholding tax until May 31, 2009, the expiry date of your Income Tax Holiday (ITH) extension, as provided for under Revenue Regulations No. 2-98, as amended. Documents submitted disclosed that you are a BOI-registered enterprise with Certificate of Registration No. 2001-065 dated April 23, 2001; that you are a producer of coconut oil and copra cake on a non-pioneer status with pioneer incentives, enjoying income tax holiday for a period of six (6) years reckoned from the start of your commercial operation in August 2001 or actual start of commercial operations; that in a meeting held on February 6, 2008, the Board of Investments approved your application for the extension for one (1) year of your income tax holiday (ITH) incentive; that the approved bonus year under your Certificate of Registration No. 2001-065 is for the period starting June 2008 up to May 31, 2009 using the net foreign exchange earnings criterion pursuant to Art. 39 (a) (1) (iii) of E.O. 226 subject to the condition that you shall undertake Corporate Social Responsibilities (CSR) activities which shall be completed on the actual availment of the bonus year; that the CSR activity shall be aligned with the priority programs/projects of the National Anti-Poverty Commission and/or other special laws such as R.A. 7942 or the Mining Act and DOE Energy Regulation 1-94; that the amount spent for the CSR activities shall be reflected in the Notes to the Audited Financial Statements; and that failure to complete the CSR activity shall mean forfeiture of the approved ITH bonus year. AaHTIE In reply, please be informed that the income payments made and to be made to your company until May 31, 2009 are exempt from creditable withholding tax under Revenue Regulations No. 2-98, as amended, considering that its income tax holiday has been extended by the BOI until May 31, 2009. 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.) JAMES H. ROLDAN Assistant Commissioner Legal Service