BIR Ruling No. 099-82

March 31, 1982 BIR RULING NO. 099-82 53-f-000-00-099-82 National Sugar Trading Corporation P.O. Box 2279 Manila Attention: Mr . Pablito S . Flores Chief, Cash Disbursement Division Gentlemen : With reference to the letter dated December 21, 1981 of Mr. Emilio G. Jison, Jr., General Manager, First Farmers Milling & Marketing Cooperative Assn., Inc. (FFMMCAI) relative to your requirement on the Association's alleged withholding tax exemption, please be informed that investigation conducted by this Office disclosed that FEMMCAI is a marketing cooperative duly registered and doing business as such, under the Cooperative Marketing Law (Act 3425 as amended by R.A. 702) and Presidential Decree No. 338 as amended by Presidential Decrees Nos. 775 and 1192; hence, it is exempt from the merchant's sales tax, income tax and all other percentage taxes of whatever nature and description. Such being the case, its storage charges and handling charges on agricultural products produced or delivered to it by its members are not subject to the 3% of 15% expanded withholding tax prescribed by Section 1(e)(2)(d) of Revenue Regulations No. 13-78 as amended by Revenue Regulations No. 6-79 implementing Section 53(f) of the Tax Code, as amended by P.D. 1351, and to the 3% contractor's tax imposed by Section 205 of the Tax Code, as amended. cdtech This serves as authority of that Office to forego withholding of the corresponding taxes on the storage and handling charges of FFMMCAI. Very truly yours, RUBEN B. ANCHETA Acting Commissioner