BIR Ruling No. 154-84

September 12, 1984 BIR RULING NO. 154-84 24-71-003-154-84 Gentlemen : This refers to your letter dated June 19, 1984 requesting that you be allowed to withhold and pay to the Bureau of Internal Revenue the 15% income tax due on dividends declared in favor of your parent corporation, Caltex Petroleum Corporation on the day you actually remit such dividend income. In reply thereto, I have the honor to inform you that your request can not be granted for lack of legal basis. For Philippine internal revenue tax purposes, the liability to withhold and pay the income tax withheld at the source from dividends due to foreign corporation like Caltex Petroleum Corporation, is at the time of the accrual of the aforesaid income and not at the time of the actual remittance or payment thereof. (BIR Ruling No. 71-003) Moreover, in the case of the Construction Resources of Asia, Inc. vs. CIR CTA Case No. 3307 promulgated on November 25, 1983, the court held that the liability of the taxpayer to withhold and pay the income tax withheld-at-source from certain payments due to a non-resident foreign corporation attaches at the time of the accrual of the aforesaid payments and not at the time of actual payment or remittance thereof. adc Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner