Rombe Philippines, Inc.

September 8, 2009 BIR RULING [DA-(IL-027) 501-09] DA234-02 Rombe Philippines, Inc. Unit 158 15th Floor The Columbia Tower Ortigas Avenue, Mandaluyong City Attention: Ms. Buenaventura M. Peralta President Gentlemen : This refers to your letter dated December 16, 2008 requesting for a ruling that income payments made to Rombe Philippines, Inc., a Board of Investments (BOI) registered enterprise, is exempt from income tax and consequently from withholding tax pursuant to Section 2.57.5 (B) (2) of Revenue Regulations No. 2-98, as amended. It is represented that Rombe Philippines, Inc. is BOI-registered enterprise with BOI Certificate of Registration 2007-254 dated December 27, 2007 as New Producer of Pork Prime Cuts and its By-Products; and that as such, it is entitled to an income tax holiday (ITH) for a period of four (4) years from the date of its registration on revenue generated from the pork prime cuts and its by-products. In reply thereto, please be informed that Section 2.57.5 (B) (2) of Revenue Regulations No. 2-98, as amended, provides that IHCacT "SECTION 2.57.5. Exemption from Withholding. The withholding of creditable withholding tax prescribed in these Regulations shall not apply to income payments made to the following: (B) Persons enjoying exemption from payment of income taxes pursuant to the provisions of any law, general or special, such as but not limited to the following: (1) . . . (2) Corporations registered with the Board of Investments and enjoying exemption from the income tax provided by Republic Act No. 7916 and the Omnibus Investment Code of 1987; xxx xxx xxx" Considering that Rombe Philippines, Inc. is registered with the BOI and enjoying exemption from the payment of income taxes pursuant to the provisions of Article 39 (a) (1) of the Omnibus Investment Code of 1987 or until December 27, 2011, the income payments made to Rombe Philippines, Inc. pursuant to its BOI-registered activities, during the ITH period shall not be subject to creditable withholding tax prescribed in Revenue Regulations No. 2-98, as amended. THCSEA 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