BIR Ruling No. 002-13

January 3, 2013 BIR RULING NO. 002-13 E.O. 226; Secs. 57 (B); 106 (A) (1) (a); 109 (1) (P); 196 NIRC; BIR Ruling No. 474-2011 Sayuno Mendoza & San Jose Law Offices Suite 806 Park Trade Center Madrigal Business Park Muntinlupa City Attention: Lucien E. Sayuno Gentlemen : This refers to your letter, dated September 28, 2012, requesting clarification on BIR Ruling No. 474-2011 issued by this Office dated December 5, 2011, particularly, the taxable period from which the four (4)-year tax exemption granted to CDC Realty, Inc. shall commence, with respect to its BOI-registered housing project, Manila Rivercity Residences-Delas Alas Street, Sta. Ana, Manila. The relevant portion of the said ruling provides: DEICaA "Accordingly, since CDC-Manila Rivercity Residences , is a BOI registered project, this Office is of the opinion as it hereby holds, that income payments received by CDC Realty, Inc . in connection with the aforementioned housing project, CDC-Manila Rivercity Residences , are exempt from the creditable withholding tax imposed under RR No. 2-98, as amended by RR No. 6-2001, for a period of four years starting from June 12, 2008 ." (underscoring supplied) Verification from the Specific Terms and Conditions attached to the Certificate of Registration dated January 27, 2010, and the Certificate of Entitlement dated May 15, 2012 issued by the Board of Investment (BOI) shows that CDC Realty, Inc. is entitled to income tax holiday (ITH) incentive for a period of four (4) years from March 2010 or actual start of commercial operations/selling whichever is earlier but in no case earlier than the date of registration, in connection with the housing project, Manila Rivercity Residences-Delas Alas Street, Sta. Ana, Manila. Accordingly, this Office hereby amends BIR Ruling No. 474-2011 and rules that the period from which the four year ITH incentive of CDC Realty, Inc. shall commence on March 2010 or actual start of commercial operations/selling whichever is earlier but in no case earlier than the date of registration. Thus, the income payments received by CDC Realty, Inc. arising from the project, Manila Rivercity Residences , are exempt from the creditable withholding tax imposed under RR No. 2-98, as amended by RR No. 6-2001, for a period of four years starting from March 2010 or actual start of commercial operations/selling whichever is earlier but in no case earlier than the date of registration. 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.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue