Filing of Corporate Quarterly Income Tax Return andFfinal Adjustment Return

August 10, 1989 BIR RULING NO. 172-89 24 000-00 172-89 Gentlemen : This refers to your letter dated March 16, 1989 requesting exemption from the filing of corporate quarterly income tax return and final adjustment return considering that you are a BOI registered enterprise which is granted incentive, i.e., an income tax holiday under Executive Order No. 226. It is represented that you are a domestic corporation organized and existing under the laws of the Philippines; that you have been authorized under Board of Investments (BOI) Certificate of Authority No. 1849 dated March 25, 1988 to act as foreign buyer's representative to undertake the following activities, viz: 1. To coordinate purchases made by foreign buyers of garments and other products locally produced; cdtech 2. To see to it that the quality of the garments and other products to be shipped out meet the international export standard; 3. To follow up local manufacturers in shipping out on time the garments and other products for export; and 4. To check that other conditions in the L.C. are complied with by local manufacturers. that the aforementioned authority granted to you by the BOI is subject to the following conditions: 1. That you will increase the proposed authorized capital stock of P250,000.00 to P1,200,000.00; casia 2. That your foreign investor, Goldshore Trading Ltd. shall remit the amount of U.S. $50,000.00, of which US $20,000.00 shall be remitted immediately after the issuance of the Certificate of Authority and the balance of US $30,000.00 within a period of one (1) year, proof of which shall be submitted to the board; 3. That you will not charge sales commission from local supplier; 4. That you shall not export the products for your own account; 5. That you shall not engage in any other line of business activity without prior board activity; 6. That any availment of peso loans from banks and non-bank financial intermediaries shall be subject to prior authority of the Inter-Agency Committee on Domestic Borrowings of Foreign Firm per Central Bank Circular No. 572, Series of 1977, as amended; and 7. That you shall submit an annual report of your business activities (using the prescribed BOI Form No. 5032) with the Bureau of Internal Revenue of its income tax return for each preceding/fiscal year. and that you have been likewise licensed by the Securities and Exchange Commission to undertake other activities as stated in your primary and secondary purposes of incorporation. In reply, please be informed that your request is hereby denied. Since you are licensed by the Securities and Exchange Commission to engage in other business activities as stated in your primary and secondary purposes of incorporation, aside from the fact that one of the conditions for the grant of authority to you by the BOI to act as foreign buyer's representative is that you shall submit an annual report of your business activities (using the prescribed BOI Form No. 5032) within sixty (60) days from the filing with the Bureau of Internal Revenue of your tax returns for each preceding calendar/fiscal year, you are required to file your corporate quarterly income tax return and final adjustment return for each preceding calendar/fiscal year even if you are enjoying an income tax holiday as a BOI registered enterprise. cdt Very truly yours, (SGD.) JOSE U. ONG Commissioner