BIR Ruling No. 096-83

June 2, 1983 BIR RULING NO. 096-83 Gentlemen : This refers to your letter dated May 19, 1983 requesting a ruling as to whether or not rental payments made by the Philippine Coconut Authority (PCA) to TMX Philippines, Inc. for renting computer data processor equipment are subject to 5% expanded withholding tax. In reply, I have the honor to inform you that under Revenue Regulations No. 4-82 amending Section 1(c) of Revenue Regulations No. 13-78 as amended by Revenue Regulations No. 6-79 implementing Section 53(f) of the Tax Code, otherwise known as Expanded Withholding Tax Regulations, gross rental or other payment for the lease of equipment, whether under an operating of finance lease agreement beginning April 1, 1982 is exempt from the 5% expanded withholding tax. Accordingly, rental payments made by you to TMX Philippines, Inc., for renting its computer data processor equipment are not subject to the expanded withholding tax. However, since the aforesaid rental payments are not subject to withholding, you shall render an information return on such payments pursuant to Section 77 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. aisadc Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue