BIR Ruling No. 117-83

June 28, 1983 BIR RULING NO. 117-83 Gentlemen : This refers to your letter dated September 8, 1982 requesting that as a BOI-registered enterprise your client, PRIME WHITE CEMENT CORPORATION, be exempted from the requirement of securing from the Minister of Finance the tax credit certificate indicated in Section 3(j) of Republic Act No. 5186 (now Section 22 of P.D. 1789, otherwise known as the Omnibus Investment Code.) The reason for your request is that Section 7(f) of Republic Act No. 5186 [now Section 45 (f) which prescribes the condition for the grant of tax credit is silent as to the requirement that a tax credit certificate should first be secured by the borrower-remitter before a tax credit on taxes withheld on interest payments on foreign loans shall be given to a registered enterprise. cdt In reply, I regret to inform you that your request cannot be granted. Section 1, Rule XI of the Rules and Regulations implementing the Omnibus Investment Code is quoted hereunder: "SEC. 1. Requirements for Availment . All applications for availment of the incentive of tax credit for taxes withheld on interest payments on foreign loans under Articles 45(f) of the Code shall be filed with the Board of Investments. The BOI shall recommend to the Ministry of Finance the issuance of the corresponding tax credit certificate upon proof that the registered enterprise has assumed the liability for the payment of tax due from the lender-remittee and that no such credit is available in the country of the lender-remittee. For the purpose of submission of proof that no such tax credit is available in the country of the lender-remittee. For the purpose of submission of proof that no such tax credit is available in the country of the lender-remittee, the lender-remittee shall present a certificate of such fact by the local Embassy or Consulate in the lender-remittee's country or by the appropriate government authority in the lender-remittee's country duly authenticated by the nearest Philippine Embassy or Consulate." Under the aforequoted provision, it is clear that your client, Prime White Cement Corporation, is required to secure a tax credit certificate from the Minister of Finance. cd Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue