Maynilad Water Services, Inc.
BIR Ruling [DA-(IL-011) 278-09] • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Jun 5, 2009
Full text
June 5, 2009 BIR RULING [DA-(IL-011) 278-09] E.O. 226; DA-456-07 Maynilad Water Services, Inc. MWSS Cmpd., Katipunan Rd., Balara Quezon City Attention: Mr. Arturo Celso D. Baranda SAVP-Controller Gentlemen : This refers to your letter dated January 16, 2009 requesting for a ruling on your application for one-year extension of the Income Tax Holiday (ITH) granted by the Board of Investments (BOI) under Executive Order (E.O.) No. 226, otherwise known as the Omnibus Investments Code of 1987. CSDcTH It appears that MAYNILAD WATER SERVICES, INC. (MWSI, for short) with TIN No. 005-393-442-000 is registered with the BOI as "New Operator of Water Supply and Sewerage System for the West Service Area" with the status of "Pioneer" under BOI Registration Certificate No. 97-201 dated January 13, 1998. The one-year extension was approved by the BOI on December 17, 2008, giving MWSI a bonus year for the period January 1, 2009 to December 31, 2009. In reply, please be informed that under Section 2.57.5 (B) (2) of Revenue Regulations No. 2-98, 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. (BIR Ruling No. DA-072-98 dated March 11, 1998) Accordingly, since MWSI 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, this Office is of the opinion, as it hereby holds, that it is exempt from the payment of the creditable withholding tax imposed under Revenue Regulations No. 2-98, on income payments received by it during the aforementioned period with respect to its registered activity, subject however to the condition that both the BOI General and Specific Terms and Conditions for the grant of ITH are met during the said period. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered as null and void. aIcSED Very truly yours, (SGD.) GREGORIO V. CABANTAC Deputy Commissioner Legal and Inspection Group
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.