BIR Ruling No. 273-11

August 4, 2011 BIR RULING NO. 273-11 March 18, 2011 ABS-CBN Shared Service Center Pte. Ltd.-ROHQ Eugenio Lopez, Jr. Communications Center Eugenio Lopez Drive, Quezon City Attention: Ms. Esperanza P. Armonia Gentlemen : This refers to your letter dated September 23, 2009 requesting for confirmation of your opinion that the compensation and benefits to be paid to alien and Filipino employees of ABS-CBN Shared Service Center Pte., Ltd. ROHQ (ASSCPL-ROHQ), who occupy managerial and technical positions, as specified in your Annex, and perform qualifying services on its behalf, are subject to the 15% preferential tax rate prescribed in Section 25 (C) of the Tax Code of 1997, as amended, in relation to Article 61 of Executive Order (E.O.) No. 226, otherwise known as the Omnibus Investment Code of 1987, as amended by Republic Act (R.A.) No. 8756. Please be informed that Revenue Regulations (RR) No. 11-2010 dated October 26, 2010 further clarifies the term "Managerial and Technical Positions" under RR No. 2-98, as amended and modifies for this purpose RMC No. 41-09 including guidelines on availment of the 15% preferential Income Tax rate for qualified Filipino personnel employed by Regional or Area Headquarters and Regional Operating Headquarters of multinational companies. RR No. 11-2010 introduced a new procedure on the application for preferential rate. For this reason, the issue raised in your letter cannot be acted upon by this office as it is no longer a ruling area. You are advised to comply with the requirements set forth in RR No. 11-2010 should you wish to apply the preferential rate to your qualified employees. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue