Request for a Certificate of Exemption from the 1% Expanded Withholding Tax Imposed under Revenue Regulations No. 6-85

May 15, 1997 BIR RULING NO. 061-97 RR-6-85 000-00 061-97 Consolidated Maritime Resources Foundation, Inc. 4/F, S & L Bldg., 1500 Roxas Boulevard, Ermita M a n i l a Attention: Mr . Ramon U . Cruz Auditor Gentlemen : This refers to your follow-up letter dated September 18, 1996 stating that Consolidated Maritime Resources Foundation, Inc. is a non-stock, non-profit educational institution engaged in upgrading seaman's courses; that it is duly accredited by the Department of Education Culture & Sports (DECS); that its source of income is the collection of tuition fee from student trainee/seafarers; that your clients have continually withheld the 1% tax on the students' tuition fees and that your are of the opinion that said tuition fees are not subject to the 1% expanded withholding tax. Based on the foregoing representations, you are now requesting for the issuance of a certificate of exemption from the 1% expanded withholding tax imposed under Revenue Regulations No. 6-85, as amended. In reply, please be informed that only payments to persons enumerated under Revenue Regulations No. 6-85, implementing Section 50 (b) of the Tax Code, as amended, are subject to the expanded withholding tax. Considering that payments for tuition fees are not among those specified in said regulations, such payments are therefore, not subject to the expanded withholding tax. However, since the aforesaid payments are not subject to the expanded withholding tax, the payor shall render an information return on such payments pursuant to Section 61 of the Tax Code, as amended by Batas Pambansa Blg. 135 and as implemented by Section 21 of Revenue Regulations No. 1-82 dated March 18, 1982. 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. aisadc Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue