Request for Certificate of VAT Exemption

October 30, 2000 BIR RULING NO. 053-00 R.A. 8756 000-00 Primesoft Marketing Limited 4/F Aguirre Building 812 Arnaiz Avenue Makati City Attention: Ms . Romain Barberis Managing Director Gentlemen : This refers to your letter dated December 7, 1999 addressed to the Revenue District Officer of Revenue District No. 47, East Makati, which was referred to this Office of the Chief, Legal Division, BIR Region No. 8, Makati City, requesting for a Certificate of Exemption from VAT pursuant to the provisions of Republic Act No. 8756. HScaCT It has been shown and represented that you are a Regional Headquarters (RHQ) established in the Philippines by Primesoft Marketing Limited, a software distributor based in Hongkong; and that you are duly registered and licensed by the Securities and Exchange Commission (SEC) under Certificate of Registration No. F-1999-0008 dated June 1, 1999. In reply, please be informed that services rendered by regional or area headquarters established in the Philippines by multinational companies which act as supervisory, communications and coordinating centers for their affiliates, subsidiaries or branches in the Asia-Pacific region and do not earn or derive income from the Philippines is exempted from the value-added tax pursuant to Section 109(p) of the Tax Code of 1997 and also under Article 65 of R.A. No. 8756, which amended certain provisions of Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1997. Accordingly, you, being a Regional Headquarters in the Philippines of Primesoft Marketing Limited, shall be exempt from VAT provided that you merely act as a supervisory, communications and coordinating center for your affiliates, subsidiaries or branches in the Asia-Pacific Region and provided further that you do not earn or derive income from the Philippines. 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.) DAKILA B. FONACIER Commissioner of Internal Revenue