BIR Ruling No. 466-12

July 17, 2012 BIR RULING NO. 466-12 Section 2 (t) of Revenue Bulletin 01-03; BIR Ruling No. 210-11; BIR Ruling No. 200-11; BIR Ruling No. 190-11 Puyat Jacinto & Santos 12/F VGP Center (formerly Manila Bank Building) 6772 Ayala Avenue, Makati City 1226 Attention: Virginia B. Viray Gentlemen : This refers to your letter dated February 14, 2011 requesting, in behalf of your client, TRIPRO ASIA LIMITED, for the confirmation of your opinion that the cash dividends that it will receive from its existing and planned investments in Philippine domestic corporations are subject to a final withholding tax of fifteen percent (15%) pursuant to Section 28 (B) (5) (b) of the Tax Code of 1997, as amended. ECDaTI It is represented that TRIPRO ASIA LIMITED is a private corporation duly incorporated in British Virgin Islands and has no fixed place of business in the Philippines. It has investments in Aboitiz Equity Ventures, Inc.,a corporation organized and existing under Philippine laws, and listed in the Philippine Stock Exchange. Further, TRIPRO ASIA LIMITED plans to invest in shares of stocks of other Philippine domestic corporations, or increase its investments in Aboitiz Equity Ventures, Inc. TRIPRO ASIA LIMITED will be entitled to receive dividends from these Philippine domestic corporations. It is further represented that as of January 24, 2012, no resolution has yet been passed by Aboitiz Equity Ventures, Inc. declaring cash dividends for the year 2012. Based on the foregoing, you now request for the confirmation that pursuant to Section 28 (B) (5) (b) of the Tax Code of 1997, as amended, that since British Virgin Islands does not impose any tax on dividends received by TRIPRO ASIA LIMITED, the dividends that it will receive from Philippine domestic corporations shall be subject to the preferential withholding tax rate of 15%. In reply, please be informed that this Office cannot as yet issue a determinative ruling on the above matter considering that the issue is based on hypothetical situation, which is considered as a "No-Ruling Area" pursuant to Section 2 (t) of Revenue Bulletin 01-03 (BIR Ruling No. 210-11 dated July 5, 2011; BIR Ruling No. 200-11 dated June 29, 2011; and BIR Ruling No. 190-11 dated June 23, 2011). Section 2 (t) of Revenue Bulletin 01-03 provides: "SECTION 2. List of No-Ruling Areas. The following shall hereby be construed and identified as "No-Ruling Areas": t) Request for rulings on issue/s or transactions based on hypothetical situations;" Be that as it may, we would be glad to assist you should you request for a ruling when these transactions are executed by the concerned parties. EHSTDA Please be guided accordingly. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue