BOI-issued Tax Credit Certificate May Be Used in the Payment of Documentary Stamp Tax Liability

March 6, 1998 BIR RULING NO. 026-98 R.A. 226-115-96-026-98 Atty. Florecita P. Flores Flores Law Offices 2nd Floor, Doa Yolanda Building 7165-A Marcelo Avenue Marcelo Green Village, Paraaque Metro Manila M a d a m : This refers to your letter dated February 5, 1998, on behalf of your client, Integrated Microelectronics, Inc. (IMI) requesting for a ruling that a Tax Credit Certificate duly issued by the Board of Investments (BOI) shall continue to be allowed to be used in the payment of documentary stamp tax liability. It is represented that the recent application of IMI, a member of the Semiconductor Electronics Industry Foundation, Inc. (SEIFI to debit the amount of P481,392.00 against its Tax Credit Certificate No. 004964 for payment of documentary stamp tax was not accepted by the Collection Programs Division of this Office; that the Tax Debit Memo was duly authorized by the Incentives Department of the BOI; and that IMI was not informed of the reason for the non-acceptance of its application to apply its Tax Credit Certificate for payment of its documentary stamp tax liability. In reply thereto, please be informed that in BIR Ruling No. 115-96 dated October 31, 1996 addressed to Amertron Incorporated, Ninoy Aquino Ave.,San Dionisio, Paraaque, Metro Manila, this Office held that xxx xxx xxx "In reply, please be informed that pursuant to Article 21 of the Omnibus Investments Code (E.O. No. 226), "tax credit" shall mean any of the credits against taxes and/or duties equal to those actually paid or would have been paid to evidence which a tax credit certificate shall be issued by . . . the Board, if so delegated by the Secretary of Finance. The tax credit certificates . . . issued by the Board . . . shall be used to pay taxes, duties, charges and fees due to the National Government . . . Such being the case, a Tax Credit Certificate duly issued by the Board of Investments (BOI) shall, upon proper application, be allowed to be used in payment of your documentary stamp tax liability". Thus a Tax Credit Certificate duly issued by the BOI to IMI shall, upon proper application, be allowed to be used in payment of its documentary stamp tax liability. (BIR Ruling No. 115-96 dated October 31, 1996) LibLex 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.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue