BIR Ruling No. 311-82

December 23, 1982 BIR RULING NO. 311-82 290-A 000-00 311-82 Messrs. Sycip, Gorres, Velayo & Co. Certified Public Accountants P.O. Box 589, Manila Attention: Mr . C . C . Gison Tax Division Gentlemen : This refers to your letter dated June 17, 1980 requesting in behalf of your client, Citibank N.A. exemption from the payment of the 10% overseas communication tax on outgoing communications of its foreign currency deposit unit (FCDU). It is represented that your client is a foreign commercial bank authorized to do business in the Philippines; that it is authorized by the Central Bank to operate an expanded foreign currency deposit unit (FCDU) under P.D. 1035 and Central Bank Circular No. 547; and that pursuant to Section 24(f)(2) of the Tax Code, as amended by P.D. No. 1773, your client shall be exempt from all taxes, except net income from such transactions as may be specified by the Minister of Finance, upon recommendation of the Monetary Board to be subject to the usual income tax payable by banks. In reply, I regret to inform you that your request cannot be granted for lack of legal basis. Section 290-A of the Tax Code of 1977, as amended enumerates the instances where the 10% overseas communication tax shall not apply, and your client is not one of those enumerated in said Section 290-A. Accordingly, your client is not exempt from the payment of the 10% overseas communication tax on outgoing messages. Very truly yours, RUBEN B. ANCHETA Acting Commissioner