Exemption from Withholding Tax — LVN Pictures, Inc.

August 7, 1981 BIR RULING NO. 153-81 53-f 000-00 153-81 LVN Pictures, Inc. 34 P. Tuazon Blvd. Cubao, Quezon City Attention: Mr . Jeremias J . Tecson Sales and Promotion Consultant Gentlemen : This refers to your letter dated March 11, 1981 requesting a ruling on the correct rate of withholding tax applicable to LVN Pictures, Inc., in connection with its contract with the Population Commission. It is represented that LVN Pictures, Inc. entered into a contract with the Population Commission for the replication of the film "Sapin-Sapin, Patong-Patong". In reply, please be informed that contractors for film processing are not one of those enumerated under Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 6-79. Accordingly, the payment due to LVN Pictures, Inc. in connection with its contract with the Population Commission is not subject to withholding tax under said Revenue Regulations. However, since you are a contractor for processing and printing as stated in your letter, and considering that the payor, Population Commission, is a government entity, the 3% contractor's tax due from you shall be deducted and withheld from the money payments to you, in accordance with Republic Act No. 1051, as implemented by Revenue Regulations No. 16-77. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner