Money Payments to Electric and Local Waterworks Cooperatives are Not Subject to the Withholding Provisions of Revenue Regulations No. 20-86

July 2, 1987 BIR RULING NO. 189-87 287 000-00 189-87 Gentlemen : This refers to your letter dated April 8, 1987 requesting, in effect, a ruling as to whether you, as withholding agent, should continue to deduct and withhold the corresponding franchise tax before making money payments to electric and local waterworks cooperatives doing business with you, in view of the passage of Presidential Memorandum Order No. 85 on January 21, 1987. In reply, please be informed that said Memorandum Order is explicit in its provisions that the implementation of Executive Order No. 93, insofar as electric, agricultural, irrigation and local waterworks cooperatives are concerned, is suspended until June 30, 1987. In other words, those cooperatives specifically mentioned therein shall continue to enjoy the tax and duty incentives previously granted to them notwithstanding the effectivity of Executive Order No. 93 on March 10, 1987; hence, your money payments to them are not subject to the withholding provisions of Revenue Regulations No. 20-86 up to June 30, 1987. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner