BIR Ruling No. 126-82

April 21, 1982 BIR RULING NO. 126-82 037-c-3 00-77 126-82 Messrs. Gozon, Elma, Berenguer & San Juan Attorney-At-Law 6th Floor, Legaspi Towers 200 107 Paseo de Roxas, Legaspi Village Makati, Metro Manila Attention: Mr . Romulo D . San Juan Gentlemen : This refers to your letter dated November 20, 1981 requesting a ruling to the effect that the remittances of your client, Marcopper Mining Corporation to International Inspection and Testing Corporation of Japan are not subject to withholding tax. It is represented that your client is an exporter of copper concentrates to Japan; that it has engaged the services of International Inspection and Testing Corporation (INTECO) of Japan, a non-resident foreign corporation to supervise and superintend the discharge, delivery, weighing, sampling, distribution and moisture determination of the concentrates as each shipment reaches Japan; and that said services and all phases of its work are performed outside the Philippines. In reply, I have the honor to inform you that payments for services consisting of supervision and superintendence performed in Japan, are considered income derived from sources outside the Philippines. Accordingly, and since a non-resident foreign corporation is subject to income tax only on income from sources within the Philippines, the remittances to be made by your client to INTECO are not subject to income tax and consequently, to the 35% withholding tax prescribed by Section 24 (b) (1) in relation to Section 53 (b) (2) of the Tax Code, as amended. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner