Manila Hotel Required to Withhold Creditable Withholding Taxes on Income Payments to Philippine Residents

April 14, 1998 BIR RULING NO. 045-98 000-00 45-98 The Manila Hotel One Rizal Park 1099 Manila Attention: Mr . Agapito L . Baluyot , Jr . Assistant Comptroller Gentlemen : This refers to your letter dated June 21, 1997 requesting for a ruling as to whether or not The Manila Hotel Corporation is still required to deduct or withhold taxes before making money payments to its various payees. It is represented that The Manila Hotel Corporation has been privatized on April 25, 1997 when the Manila Prince Hotel Corporation purchased and paid 51% of its share of stocks; and that prior to its privatization, The Manila Hotel Corporation was fully owned by the Government Service Insurance System. In reply, please be informed that since Manila Hotel is no longer a government-owned or controlled corporation, it is no longer constituted as a withholding agent for purposes of deducting and withholding the taxes on money payments to private individuals, corporations, partnerships and/or associations as required under Republic Act No. 1051, but rather, it is now required to withhold creditable withholding taxes on income payments to persons residing in the Philippines as provided for under Revenue Regulations No. 6-85, as amended, otherwise known as the Revised and Consolidated Withholding Tax Regulations. Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue