Outgoing Telecommunications Services are Subject to the 10% Overseas Communications Tax

February 19, 1982 BIR RULING NO. 039-82 290-A 123-81 039-82 Dumez Company 754 Shaw Blvd. cor. Sheridan St. Mandaluyong, Metro Manila Attention: Mr . Andre Iconomoff Regional Manager Gentlemen : This refers to your letter dated August 6, 1981, requesting exemption from the 10% overseas communication tax and consequently the refund of your alleged payment of said tax prescribed by Section 290-A of the Tax Code of 1977, as amended by Presidential Decree No. 1457. You have represented that as a multinational corporation with regional headquarters located in the Philippines you are registered and operating within the confines of Presidential Decree No. 218; and that pursuant to the provision of Section 7 of said Presidential Decree, you are exempt from all forms of local licenses, fees, dues, imposts or any other local taxes or burdens. In reply, please be informed that 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. It is regretted, therefore, that your request for exemption and claim for refund of the alleged payment of said tax has to be, as it is hereby, denied for lack of legal basis. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner