Tax liability of Philippine Fisheries Development Authority-Iloilo Fishing Port Complex

April 17, 1989 BIR RULING NO. 077-89 50 (b) 000-00 077-89 Gentlemen : This refers to your letter dated March 10, 1989 requesting in effect a ruling as to whether or not the Philippine Fisheries Development Authority-Iloilo Fishing Port Complex is exempt from the expanded withholding tax on your rental payment for the use of its facilities in the Iloilo Fishing Port Complex. cdi In reply thereto, please be informed that your query is answered in the negative. Under P.D. No. 1931 and Executive Order No. 93 effective June 11, 1984 and March 10, 1987, respectively, the tax exemptions and/or preferential tax treatment in favor of government-owned or controlled corporations, including their subsidiaries, and all other units of government, are withdrawn. One of the said exemptions which was withdrawn is the exemption from income tax granted in favor of the Philippine Fish Marketing Authority, pursuant to Section 10 of P.D. No. 977 effective on August 11, 1976. Such being the case, said Authority being subject to income tax, the income payment to it, as well as to the fish markets and related facilities one of which is the Iloilo Fishing Port Complex which were established by the Authority pursuant to P.D. No. 977, are subject to the withholding provisions of Revenue Regulations No. 6-85 or the Revised and Consolidated Expanded Withholding/Tax Regulations. Your rental payments to the Iloilo Fishing Port Complex are subject to the 5% withholding tax. (Sec. 1(c), Revenue Regulations No. 6-85) cd Very truly yours, (SGD.) JOSE U. ONG Commissioner