NGL Consulting Services Limited

October 24, 2008 BIR RULING [DA-(IL-032) 346-08] BIR Ruling No. DA-242-03 NGL Consulting Services Limited 12th Floor, 6750 Office Tower Ayala Avenue Makati City Attention: Ms. Cosette A. Kagaoan Finance Team Lead Gentlemen : This refers to your request, indorsed to this Office by Revenue Region No. 8, Makati City, for exemption from creditable expanded withholding tax prescribed under Revenue Regulations (RR) No. 2-98, as amended on account of its registration with the Philippine Economic Zone Authority (PEZA). As represented, NGL Consulting Services Limited-Philippine Branch ("NGL" for brevity) is a corporation duly registered with the PEZA, as an "Ecozone IT (Export) Enterprise" under PEZA Certificate of Registration No. 06-68-IT dated November 28, 2006, to provide management and information technology consulting, technology services, and outsourcing. NGL has been granted a four-year income tax holiday (ITH) incentive effective on the committed date of start of commercial operations, or the actual date of start of commercial operations, whichever is earlier. 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, as amended, the withholding tax prescribed in the said Regulations shall not apply to income payments to persons enjoying exemption from the income tax pursuant to the provisions of any law, general or special. Accordingly, since NGL is a PEZA-registered enterprise, enjoying a four-year ITH, income payments made to it in respect to its registered activity shall not be subject to 2% expanded creditable withholding tax prescribed in RR No. 2-98, as amended, for a period of four (4) years from the committed date of start of commercial operations, or the actual date of start of commercial operations, whichever is earlier. SEHaDI 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