Request for a Certificate of Tax Exemption of the Income Payments Made to a Local Supplier of Goods

December 15, 1994 BIR RULING NO. 182-94 50 (b) 000-00 182-93 Cebu Mitsumi Inc. (FCB) Sabang, Danao City Cebu Attention: Mr . Hector Taleon, Jr . Senior Supervisor Manila Office Gentlemen : This refers to your letter dated September 21, 1994, requesting for the issuance of a certificate of exemption from the creditable expanded withholding tax of the income payments made to you as local supplier of goods. In reply, please be informed that Section 4(b)(2) 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 payment of income taxes pursuant to the provisions of the Omnibus Investments Code of 1987, as amended. As a non-pioneer enterprise registered with the Board of Investments (BOI), you have been granted various certificates of registration, each of which entitles you to income taxes holiday pursuant to the provisions of Section 39(a)(1) of the Omnibus Investments Code of 1987, as amended. Such being the case, the income payments made to you by any of the top 5,000 corporations in the Philippines as a local supplier of goods shall not be subject to the 1% creditable expanded withholding tax prescribed in Section 1(n) of said Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94. This serves as your Certificate of Exemption. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue