Pueblo de Oro Development Corporation

November 27, 2008 BIR RULING [DA-(IL-044) 474-08] RR 2-98; BIR Ruling No. DA-349-04 Pueblo de Oro Development Corporation 17/F Robinsons Summit Center 6783 Ayala Avenue Makati City Attention: Mr. Crisostomo F. Bate Vice President Gentlemen : This refers to your letter dated October 8, 2008 requesting for a ruling that since Pueblo de Oro Development Corporation is entitled to Income Tax Holiday for four (4) years on account of its registration with the Board of Investments (BOI) under Executive Order No. 226, otherwise known as the "Omnibus Investments Code of 1987", it is, therefore, not subject to expanded withholding tax pursuant to Revenue Regulations (RR) No. 2-98, as amended. DHCSTa Documents show that Pueblo de Oro Development Corporation is a corporation duly registered with the Board of Investments as a "New Developer of Low-Cost Mass Housing Project" on a non-pioneer status under Certificate of Registration No. 2008-263 dated September 10, 2008. Pueblo de Oro Development Corporation has been granted a four-year income tax holiday incentive from September 2008 or from the actual start of commercial operations/selling, whichever is earlier but in no case earlier than the date of registration. Its project is the "La Aldea del Rio" located at Barangay Kalawisan, Lapu-Lapu City. 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 provided by Republic Act No. 7916 and the Omnibus Investments Code of 1987. Accordingly, since Pueblo de Oro Development Corporation 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 September 2008 or from the actual start of commercial operations/selling, whichever is earlier but in no case earlier than the date of registration, this Office is of the opinion as it hereby holds, that it is exempt from the payment of the creditable withholding tax imposed under RR No. 2-98, as amended, on income payments received by it during the aforementioned period with respect to 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 as null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service