15% Withholding Tax — Remittance to a Non-Resident Foreign Corporation

February 5, 1980 BIR RULING NO. 009-80 Far East Bank & Trust Company Muralla, Intramuros Metro Manila Attention: Mr . Oscar S . Moreno Legal Officer Gentlemen : This refers to your letter dated March 20, 1979 requesting a certification from this Office that the dividends which you will remit to Chemical International Finance, Ltd., is subject to withholding tax at the rate of 15% instead of 35%. It appears that the Far East Bank and Trust Company is a domestic corporation, 12.499125% of the total outstanding capital stock of which is owned by the aforenamed recipient corporation; and that the latter is a non-resident foreign corporation domiciled in the United States. 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 Far East Bank & Trust Company will remit to Chemical International Finance, Ltd., 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