BIR Ruling No. 278-82

October 14, 1982 BIR RULING NO. 278-82 24-b 070-81 278-82 The HongKong & Shanghai Banking Corp. 6780 Ayala Avenue, Makati Metro Manila, Philippines Attention: A . R . Servinio Gentlemen : This refers to your letter dated October 7, 1982 requesting confirmation that the companies listed in the schedule you submitted are entitled to the reduced 25% withholding tax on cash dividends derived from Philippine corporations under the RP-UK Tax Treaty, instead of the regular 35% withholding tax. The relevant provisions of Article 9 of the RP-UK Treaty provides: "Such dividends may also be taxed in the Philippines but where such dividends are beneficially owned by a resident of the United Kingdom the tax so charged shall not exceed: a) 15% of the gross amount of dividends if the beneficial owner is a company which controls directly or indirectly at least 10% of the voting power in the company paying dividends; b) in all other cases, 25% of the gross amount of the dividends." Under the above provision the reduced withholding tax is applied to dividends beneficially owned by residents of the United Kingdom of Great Britain and Northern Ireland. Accordingly, if the companies listed in your schedule are the beneficial owners of the dividends and they are residents of the United Kingdom of Great Britain or Northern Ireland, then the withholding tax on such dividends is 15% or 25%, as the case may be. cdta Very truly yours, RUBEN B. ANCHETA Acting Commissioner