BIR Ruling No. 136-82

April 22, 1982 BIR RULING NO. 136-82 290-A 000-00 136-82 Local Water Utilities Administration 7th Floor NIA Building National Government Center EDSA, Quezon City 3004 P.O. Box 319 Araneta Centre Attention: Mr . Carlos C . Leano, Jr . General Manager Gentlemen : This refers to your letter dated February 6, 1980, requesting exemption in favor of your consultant, Kampsax-Kruger, from the 10% overseas communications tax prescribed by Section 290-A of the Tax Code of 1977, as amended by Presidential Decree No. 1457. It is represented that you have a consultancy contract with Kampsax-Kruger, a joint venture duly organized and existing under the laws of Denmark; that under your consultancy contract with the said consultants dated February 7, 1978, you have committed to take necessary steps to ensure that the Government will exempt the consultancy and its non-resident Filipino employees from any and all taxes. In reply, I regret to inform you that your request cannot be granted for lack of legal basis. 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 foreign consultants are not one of those enumerated therein. Accordingly, your consultant, Kampsax-Kruger, is not exempt from the payment of the 10% overseas communications tax on outgoing messages. Please be guided accordingly. Very truly yours, RUBEN B. ANCHETA Acting Commissioner