Applicability of Withholding Provisions of Sec. 54 of the NIRC

July 25, 1958 BIR RULING NO. 407-58 Warnes, Barnes & Co., Ltd. Manila Gentlemen : With reference to your letter dated July 8, 1957, I have the honor to inform you that the withholding provisions of Section 54 of the National Internal Revenue Code apply only in the case of foreign corporations not engaged in trade or business within the Philippines nor having an office or place of business therein. Accordingly, and as the Hong-Kong Airways, Ltd. is a corporation (for purposes of income tax) maintaining agents in the Philippines and whose aircrafts call in this country and, therefore, considered as engaged in trade or business therein, said withholding provisions do not apply to the income of said corporation derived from outgoing passengers and/or freight services. A copy of this letter has, on even date, been furnished the Central Bank of the Philippines for its information. LLpr Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue