BIR Ruling No. 129-82

April 22, 1982 BIR RULING NO. 129-82 290-A 053-79 129-82 American Express International, Inc. Area Travel Headquarters ASIA P.O. Box 1883, MCC Rico House, 126 Amorsolo Street Makati, Metro Manila Attention: B . PE-WIN Vice-President-Travel Gentlemen : This refers to your letter dated August 21, 1981 requesting exemption from the payment of the energy tax on Electric Power consumption and the 10% overseas communications tax. cdti It is represented that you are a multinational company, organized and existing under the laws of the State of Delaware, U.S.A. and has been registered and licensed by the Philippine Securities and Exchange Commission to establish its Travel Regional Headquarters in the Philippines pursuant to Presidential Decree No. 218 and its implementing Rules and Regulations; that one of the incentives for establishing a regional headquarters in the Philippines under Presidential Decree No. 218 is the exemption from the payment of certain taxes. In reply, please be informed that pursuant to Section 1 of Batas Pambansa Blg. 36 only residential consumers of electric power utilities are subject to the energy tax on electric power consumption. The energy tax shall apply to every single family dwelling unit whose energy requirements are serviced and measured through only one electric meter issued and installed by an electric power utility company. Under these provisions of the law and regulations, you are not a residential customer and, therefore, you are exempt from the Energy Tax on Electric Power Consumption. With respect to your request for exemption from the 10% overseas communications tax, I regret to inform you that, for lack of legal basis, the same cannot be granted. Section 290-A of the Tax Code, as amended by Presidential Decree No. 1457 enumerates the instances where the 10% overseas communications tax shall not apply, and multinational companies are not one of those enumerated in said Section. Accordingly, payments made by you as a multinational company on outgoing telecommunications services are subject to the 10% overseas communications tax. (BIR Ruling No. 053-79 June 27, 1979) Please be guided accordingly. Very truly yours, RUBEN B. ANCHETA Acting Commissioner