Fisher Farms, Inc.

July 15, 2009 BIR RULING [DA-(IL-021) 373-09] 57 (B); DA-349-2004 Fisher Farms, Inc. Dampol 2nd A, Pulilan Bulacan Attention: Henry J. Uy President Gentlemen : This refers to your letter dated August 21, 2007, requesting for Tax Exemption Certificate pursuant to Revenue Regulations No. 2-98, as amended, on account of your registration with the Board of Investments (BOI) under Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987". CEaDAc As represented, Fisher Farms, Inc. is a bonafide registered enterprise with Board of Investments per Certificate of Registration No. EP 2004-138 dated December 09, 2004 as new export producer of processed marine and aquaculture products on a non-pioneer status under the Omnibus Investments Code of 1987 (E.O. 226); that since Fisher Farms, Inc. is a BOI registered, * it enjoys exemption from paying income tax pursuant to Section 39 (a) (1) of the Omnibus Investments Code of 1987 for a period of four (4) years from July 2005 or actual start of commercial operations/selling, whichever is earlier, but in no case earlier than the date of registration; and that the income tax holiday shall be limited only to revenue generated from its registered activity. In reply, please be informed that under Section 2.57.5 (B) (2) of Revenue Regulations No. 2-98, as amended by Revenue Regulations No. 6-2001 implementing Section 57 (B) of the Tax Code of 1997, as amended, 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 Fisher Farms, Inc. 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 July 2005, 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, as amended by Revenue Regulations No. 6-2001 on income payments received by it during the specified period in connection with its registered activity. 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.) JAMES H. ROLDAN Assistant Commissioner Legal Service