BIR Ruling No. 232-61
BIR Ruling No. 232-61 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jul 26, 1961
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July 26, 1961 BIR RULING NO. 232-61 The Executive Vice-President Bolinao Electronics Corporation P. O. Box 1593, Manila S i r : Reference is made to your letter dated July 21, 1961, requesting in effect as to what is the basis of computation of the withholding tax due on rentals and royalties on TV films remitted abroad by local TV stations to non-resident foreign TV film suppliers or distributors not engaged in trade or business in this country. LLphil In reply thereto, I have the honor to inform you that the formula contained in our General Circular No. V-334 is equally applicable to non-resident foreign TV film suppliers or distributors. The amount of tax that should be withheld by the local TV stations shall be that amount computed in accordance with subparagraph (4) of the 2nd paragraph of General Circular No. V-334. Please be advised in this connection, however, that freight is not deductible, it not being an item that goes into the cost, whether of production or exhibition right. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue
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