Smart Communications, Inc. Exempted from Payment of Documentary Stamp Tax on Any Document Necessary in the Conduct of the Business Covered by Its Franchise Pursuant to BIR Ruling No. 117/000-00/014-95

April 24, 1995 BIR RULING NO. 077-95 117 014-95 077-95 Smart Communications, Inc. 12/F Rufino Pacific Tower 6784 Ayala Avenue Makati City Attention: Tirso F . Tarcedilla Corporate Comptroller Gentlemen : This refers to BIR Ruling No. 117/000-00/014-95 dated February 8, 1995 exempting you from the payment of documentary stamp tax on any document executed by you which is necessary in the conduct of the business covered by the franchise. The exemption was issued because of the phrase "in lieu of all taxes" found in your franchise, Republic Act No. 7294, which is buttressed by the Supreme Court decision in the case of Philippine National Railways Company vs. William T. Nolting , 34 Phil. 401. By way of clarification, please be informed that the other party to any taxable documents, papers or instruments executed by you who is not exempt from tax shall be the one directly liable to the documentary stamp taxes due on such document, papers or instruments, pursuant to Section 173 of the Tax Code, as amended by P.D. No. 1994. This modifies BIR Ruling No. 117/000-00/014-95 dated February 8, 1995. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue