BIR Ruling No. 095-82

March 30, 1982 BIR RULING NO. 095-82 24-e 000-00 095-82 Welcome (Philippines) Inc. P.O. Box 105 Makati CC Metro Manila 3117 Attention: Mr . W . A . Castro Manager, Accounts Dept . Gentlemen : This refers to your letter dated April 20, 1981 requesting clarification regarding Section 5 of Revenue Regulations No. 7-81 providing that regulations stated therein shall take effect on taxable years beginning 1981. In reply, please be advised that the term "taxable year" contemplated in Section 5 of Revenue Regulations No. 7-81 refers to a period of twelve uninterrupted months and had acquired an accepted meaning as a calendar year or a fiscal year. Calendar year corporations have a taxable year beginning January 1 and ending December 31, while fiscal year corporations have a taxable year beginning the first day of any month except January 1. (The Manila Times v. Commissioner, C.T.A. No. 2263, December 17, 1973.) Therefore, under the above-quoted provision of the regulations, with respect to corporations on the calendar year basis, the increased rate of 10% corporate development tax shall apply to their taxable year beginning January 1, 1981 to December 31, 1981. On the other hand, with respect to corporations on the fiscal year basis, the said increased rate of 10% corporate development tax shall apply to their taxable year which begins on the first day of any month in the year 1981, except January 1, 1981. In view thereof, since you are a corporation operating on a fiscal year basis and your fiscal year 1981 begins on September 1, 1981, the increased rate of 10% corporate development tax shall only apply to you beginning that date. Very truly yours, RUBEN B. ANCHETA Acting Commissioner