15% Withholding Tax — A Non-Resident Foreign Corporation

February 1, 1980 BIR RULING NO. 005-80 Messrs. Sycip, Gorres, Velayo & Co. P.O. Box 589, Manila Attention: Atty . W . E . Sanchez Tax Division Gentlemen : This refers to the letter of Filinvest Credit Corporation, Filinvest Financial Center Building, 8753 Paseo de Roxas, Makati, Metro Manila dated February 17, 1979 and to your letter dated November 9, 1979 requesting a certification from this Office that the dividends which Filinvest Credit Corporation will remit to Chase Manhattan Overseas Banking Corporation, a non-resident foreign corporation domiciled in the United States, is subject to withholding tax at the rate of 15% instead of 35%. aisa dc It appears that Filinvest Credit Corporation is a domestic corporation, 37.5% of the total outstanding shares of stock of which is owned by the aforenamed foreign corporation. In view thereof, and considering that under the present provisions of the U.S. Federal Tax Code,the amount of tax deemed paid on such dividends, and accordingly, to be credited against U.S. tax on said dividends, exceeds the 20% requirement of Section 24(b) (1) (iii) of the Tax Code of 1977, as amended, this Office hereby certifies that the dividends which Filinvest Credit Corporation will remit to Chase Manhattan Overseas Banking Corporation domiciled in U.S. are subject to withholding tax at the rate of 15% only. (B.I.R. Ruling No. 76-004 dated July 19, 1976). Very truly yours, RUBEN B. ANCHETA Acting Commissioner