BIR Ruling No. 258-82

October 12, 1982 BIR RULING NO. 258-82 24-b-1-iii 25-80 258-82 Messrs. Ozaeta, Romulo, Mabanta, Buenaventura, Sayoc and De los Angeles Second Floor, Corinthian Plaza 121 Paseo de Roxas, Makati Metro Manila Attention: Atty . Exequiel Javier Gentlemen : This refers to your letter dated April 15, 1981 requesting a ruling from this Office that the cash dividends which your client Kraft Foods Inc. (Philippines) will remit to their American shareholder, Kraft Inc., is subject to withholding tax at the rate of 15%. It appears that the recipient corporation, a non-resident foreign corporation duly organized and existing under and by virtue of the laws of the State of Delaware, U.S.A. owned 99.99% of the outstanding capital stock of the Kraft Foods Inc. (Philippines) In view thereof, and considering that under the present provisions of the U.S. Federal Tax Code, the amount of tax deemed paid on such dividends, and accordingly, to be credited against the U.S. tax in said dividends, meets the 20% requirement of Presidential Decree No. 369, this Office hereby certifies that the cash dividends which you will remit to Kraft Inc., domiciled in United States are subject to withholding tax at the rate of 15% only, pursuant to Section 24(b)(1)(iii) of the Tax Code of 1977, as amended. Very truly yours, RUBEN B. ANCHETA Acting Commissioner