Outgoing Telecommunications Services are Subject to the 10% Overseas Communications Tax
BIR Ruling No. 035-82 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Feb 19, 1982
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February 19, 1982 BIR RULING NO. 035-82 290-A 123-81 035-82 Eutraco (Far East) Ltd. European Trading Company 803 Ermita Center Bldg. Metro Manila Attention: Mr . Isidro Tadena, Jr . Gentlemen : This refers to your letter dated July 28, 1981 requesting exemption and consequently, the refund of your alleged payment of 10% overseas communications tax prescribed by Section 290-A of the Tax Code of 1977, as amended by Presidential Decree No. 1457. It is represented that EUTRACO (FAR EAST) LTD. is a multinational corporation with regional headquarters located in the Philippines, that you are registered and operating within the confines of P. D. 218; that pursuant to the provisions of Section 3 of P. D. 218, you are not subject to tax. In reply, I regret to inform you that your request cannot be granted for lack of legal basis. Section 290-A of the Tax Code, as amended by Presidential Decree No. 1457 enumerates the instances where the 10% overseas communications tax shall not apply, and multinational companies are not among those enumerated. Accordingly, payment made by multinational companies on outgoing telecommunications services are subject to the 10% overseas communications tax. It is regretted, therefore, that your claim for refund of the alleged payment of said tax has to be as it is hereby, denied. Very truly yours, RUBEN B. ANCHETA Acting Commissioner
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