Exemption of the Transfer of the Shares from Philippine Income Tax
BIR Ruling No. 038-89 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Mar 20, 1989
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March 20, 1989 BIR RULING NO. 038-89 24 347-87 038-89 Gentlemen : This refers to your letter dated January 3, 1989 stating that your client, Del Monte Tropical Fruit Company, North America (Tropical), a U.S. corporation is in the process of effecting the transfer of its shares in Del Monte Philippines, Inc., a wholly-owned Philippine subsidiary to Central American Resources, Inc. (CARI) a Panamian corporation, which is likewise wholly-owned by Tropical in exchange solely for shares in CARI, pursuant to a corporate reorganization. cdtech In connection therewith, you are requesting confirmation of your opinion that the abovementioned transaction is exempt from Philippine capital gains tax. In reply thereto, I have the honor to inform you that the transfer of the shares of Tropical in Del Monte Philippines, Inc. to CARI in exchange solely for shares of stock in CARI pursuant to a corporate reorganization is not subject to any Philippine income tax. This ruling is based on the facts as presented. However, if upon investigation the same could not be substantiated, then this ruling shall be considered as null and void. cd Very truly yours, (SGD.) JOSE U. ONG Commissioner
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