Exemption of Filipinas Express, Inc., from the Withholding Provisions of RA No. 1051

August 26, 1960 BIR RULING NO. 368-60 Mr. Regino del Villar, Jr. Certified Public Accountant 303 Filipinas Building M a n i l a S i r : Reference is made to your letter of even date, requesting exemption, for and in behalf of your client, the Filipinas Express, Inc., from the withholding provisions of Republic Act No. 1051, as implemented by Revenue Regulations No. V-40. You stated that your client had arranged the necessary traveling papers and passage fare for a Malacaang employee and is now charging the government office concerned with the reimbursement of the passage fare only without any additional charge for the services it rendered. In answer thereto, I have the honor to inform you that, it appearing that your said client did not derive any compensation or such services and that, as claimed by you, the airline company to whom the passage fare is due is operating under a franchise, no tax need be deducted and withheld on the amount to be paid by said government officer, provided that the franchise provides for the time for payment of the tax due on the receipts of that company. cdtech Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue