Integrated Global Low-Temperature Operations, Phils., Inc.

November 11, 2008 BIR RULING [DA-(IL-041) 411-08] Section 57 (B); BIR Ruling No. DA-273-2006 Integrated Global Low-Temperature Operations, Phils., Inc. Mangahan Light Industrial Park A. Rodriguez Ave., Pasig City Attention: Rizza D. Petallo-Tesorro Finance Manager Gentlemen : This refers to your letter dated September 25, 2006, requesting a confirmation of your opinion that INTEGRATED GLOBAL Low-Temperature Operations, Philippines, Inc. (IGLO Philippines, for short), being a BOI-registered enterprise enjoying income tax holiday (ITH) pursuant to the Omnibus Investments Code of 1987, is exempt from the creditable withholding taxes prescribed under Revenue Regulations No. 2-98, as amended, on income payments received from its customers. It is represented that your company, IGLO Philippines, is registered with the Board of Investments (BOI) as a new service provider of cold storage facilities with non-pioneer status; that as such, it is entitled to an income tax holiday (ITH) for four (4) years from December 2005 or from actual operations, whichever is earlier or until December 2009. In reply, please be informed that under Section 2.57.5 (B) (2) of Revenue Regulations No. 2-98, as amended, implementing Section 57 (B) of the Tax Code of 1997, the withholding tax prescribed in the said Regulations shall not apply to income payments made to persons enjoying exemption from payment of income taxes pursuant to the provisions of any law (general or special) like the Omnibus Investments Code of 1987. Accordingly, since IGLO Philippines 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, income payments made by its customers shall not be subject to 2% expanded creditable withholding tax prescribed in Revenue Regulations No. 2-98, as amended, but only until December 2009. (BIR Ruling No. 189-2000 dated March 30, 2000). 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. SHTEaA Very truly yours, (SGD.) GREGORIO V. CABANTAC Deputy Commissioner