Foreign Shipping Corporation Engaged in Business in the Philippines

November 5, 1959 BIR RULING NO. 561-59 Mr. Renato Misericordia 451 Regina Building Escolta, Manila S i r : In reply to your letter dated October 28, 1959, please be informed that a foreign shipping corporation is deemed engaged in business in the Philippines if it extends its lines to any point within the jurisdiction of this country. As such, said corporation comes within the term "resident foreign corporation" doing business in the Philippines and is, therefore, subject to the basic and, in proper cases, the additional residence tax prescribed under section 2 of the Residence Tax Law. If the corporation starts business here on or before April 10, it should pay, for the current year, only the basic residence tax not later than April 30; whereas, if it commences business between April 11 and June 30, it should pay the same tax for the year within twenty days from the start of the business. On the other hand, if the corporation starts business on or after July 1, it is not liable to the residence tax for the year. (Sec. 5. Residence Tax Law). For the succeeding year or years that the corporation is engaged in business here, it shall be subject to the basic and additional residence tax, the latter tax depending on the amount of its gross receipts derived from its business in this country during the preceding calendar year. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue