Exemption from Withholding Tax

August 27, 1979 BIR RULING NO. 078-79 Exemption from withholding tax This refers to your letter dated December 19, 1978 requesting official confirmation that income payments to you in connection with your business of lighterage, freightage service, hauling, carriage and transportation of goods, are not subject to withholding tax under Revenue Regulations No. 13-78 implementing Presidential Decree No. 1351. Investigation conducted by this Office disclosed that while it would appear that your corporate name connotes one which is engaged in the stevedoring business, said business has been phased out and withdrawn since November 1, 1975 so that, presently, you are no longer engaged in the stevedoring business. In reply, I have the honor to inform you that under the aforesaid Regulations, income payments only to persons enumerated therein are subject to withholding tax. Money payments to you in connection with the abovementioned businesses to which you are now actually engaged in, are not among those specified in the Regulations. Accordingly, said money payments are not subject to withholding tax. (BIR Ruling No. 028-79 dated May 31, 1979). aisa dc However, said income payments are subject to income tax and to the 2% common Carrier's tax.