Request for a Certificate of Tax Exemption from the 1% Creditable Expanded Withholding Tax on Income Payments Made by Any of the top 5,000 Corporations

August 29, 1995 BIR RULING NO. 131-95 R.R. 12-94 4 (b) (2) 000-00 131-95 BMC-LMC Multi-purpose Cooperative 391 J. Rizal St., Bo. Namayan, Mandaluyong, Metro-Manila Attention: Ms . Sylvia O . Gagto BOD Chairperson Gentlemen : This refers to your letter dated April 26, 1995 requesting for a certificate of tax exemption from the 1% creditable expanded withholding tax on income payments made by any of the top 5,000 corporations. llcd In reply, please be informed that Section 4(b) of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94, is explicit in its provisions that the withholding tax therein prescribed shall not apply to income payments to persons enjoying exemption from payments of income taxes pursuant to the provisions of a special law, e.g., Republic Act No. 6938, otherwise known as the Cooperative Code of the Philippines. Such being the case, and since as represented you are registered with the Cooperative Development Authority as a non-agricultural multi-purpose cooperative enjoying tax exemption for ten (10) years from December 21, 1994, the income payments to you shall be exempt from the creditable expanded withholding tax under Section 4(b)(2) of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. cdtech Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue