Miascor Clark Catering Services Corporation

December 19, 2008 BIR RULING [DA-(VAT-058) 561-08] DA 373-05 Miascor Clark Catering Services Corporation Clark International Airport Civil Aviation Complex Clark Freeport Zone Attention: Lars Fredrik Larsen General Manager Gentlemen : This refers to your letter dated October 16, 2008 requesting for a certification that your catering services are subject to value-added tax (VAT) at zero percent (0%) and/or exempt from VAT. ECcTaH It is represented that Miascor Clark Catering Services Corporation (Miascor) is a domestic corporation duly registered with the Securities and Exchange Commission (SEC) under SEC Registration No. CS200709852 dated June 25, 2007; that it is likewise registered with the Clark Development Corporation under Certificate No. 2007-214; that Miascor is a lessee of Clark International Airport Corporation and as a Clark Freeport Zone (CFZ) enterprise it has committed to engage in the establishment and operation of a world-class inflight catering facility at the Diosdado Macapagal International Airport (DMIA) located within the Clark International Airport Corporation. Civil Aviation Complex, Clark Freeport Zone; and that in a Certification duly issued by the Clark Development Corporation certifies that Miascor is subject to the preferential tax rate of 5% on gross income earned. DCISAE In reply thereto, please be informed that Section 15 of Republic Act (R.A.) No. 7227, as amended by Section 2 of R.A. No. 9400, expressly declares CFZ as a special customs territory and that registered business enterprises within the CFZ shall be imposed a five percent (5%) tax on gross income earned, in lieu of national and local taxes. Thus, Miascor as a CFZ registered enterprise subject to the preferential tax rate of 5% on gross income earned, in lieu of national and local taxes, is considered as a Non-VAT taxpayer. SUCH BEING THE CASE, this Office holds that the catering services rendered by Miascor to international carriers are EXEMPT from VAT as prescribed in Section 4.109-1 (B) (k) of Revenue Regulations No. 16-2005. 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