Lumanta & Associates Law Office

March 12, 2020 BIR RULING NO. OT-0222-2020 Sec. 2 (r) of Revenue Bulletin No. 01-03; BIR Ruling No. 201-2015 Lumanta & Associates Law Office Suite B, 2nd Floor, Overland Park Building No. 245 Banawe St. cor. Quezon Ave. Quezon City Attention: Atty. Jan Louenn L. Lumanta and Atty. Richelle H. Orpilla Gentlemen : This refers to your letter dated March 21, 2018, requesting on behalf of Diamond Millennium Corporation ("DMC" for brevity) , for a ruling on the preferential tax rate [which includes income tax, documentary stamp tax (DST) and value-added tax (VAT)] extended to grantees and licensees of the Philippine Amusement and Gaming Corporation (PAGCOR) pursuant to Presidential Decree (PD) No. 1869, as amended by Republic Act (RA) No. 9487. Background: DMC with Taxpayer's Identification Number (TIN) ________________ and Company Registration No. H200000081 is a corporation duly organized and existing under the laws of the Republic of the Philippines, the primary purpose of which is to establish and operate a conventional or stationary bingo outlet, online bingo terminal outlet, jai-alai terminal outlet, lotto outlet, to conduct and participate in the Small Town Lottery (STL) of the Philippine Charity Sweepstakes Office (PCSO) and other allied businesses and contracting incidental thereto or connected therewith and to offer such other services to the public in connection with the operation of gaming and amusement and to do and perform such other acts and things necessary to the accomplishment of the foregoing corporate business and objects insofar as may be allowed by law and rules and regulations. DMC is a holder of gaming licenses issued by PAGCOR for its bingo operations as follows: Gaming License Reg. No. Gaming Activity Gaming Site Date of Issuance Date of Expiration Bingo Games So Building, Gaabucayan St.,Brgy. Lapasan, Cagayan de Oro City June 17, 2016 June 16, 2017 Bingo Games Pereyras Bldg.,Roxas St.,Tagum City, Davao del Norte Oct. 9, 2015 Oct. 4, 2017 Bingo Games 2nd Flr.,Unit C504 Harmonic Seven Building, 2543 Tejeron cor. Sampaguita Sts.,Sta. Ana, Manila July 4, 2017 July 4, 2018 Bingo Games Citymall-Tagum, Lapu-lapu St. cor. Pan Philippine Highway, Tagum City, Davao del Norte Aug. 18, 2017 Aug. 18, 2018 Bingo Games Luz Lozada Building, J. Rizal Avenue, Digos City, Davao del Sur Dec. 11, 2017 Sept. 10, 2018 Bingo Games Thrives Arcade, #287 Gen. Capistrano St.,Cagayan de Oro City Sept. 15, 2017 Sept. 15, 2018 Bingo Games Yuyu Building, Quirante II corner National Highway, Tagum City, Davao del Norte Oct. 13, 2017 Nov. 19, 2018 Bingo Games Lim Arcade, 2/F Doa Graciana St.,Gingoog City Nov. 27, 2017 Nov. 27, 2018 Bingo Games Samping Avenue, J.C. Aquino Avenue, Butuan City Nov. 16, 2017 Dec. 11, 2018 Bingo Games Sinco Building, Bulua Highway, Cagayan de Oro City Aug. 9, 2017 Dec. 11, 2018 Bingo Games Limketkai Mall, Limketkai Center, Cagayan de Oro City Nov. 16, 2017 Jan. 19, 2019 Bingo Games Units 15 and 16, G/F and 2/F, Topmark, Commercial Building, Paz Mendoza Guazon St.,Paco, Manila Oct. 27, 2017 Jan. 26, 2019 Bingo Games Door 101 and 102, Ground Floor, LDL Commercial Bldg.,C.P. Garcia St.,Sasa, Davao City Jan. 29, 2018 Feb. 9, 2019 Bingo Games Door 4 and 5, Ground Floor, LDL Commercial Bldg.,Lakandula St.,Agdao, Davao City Jan. 29, 2018 Feb. 9, 2019 Bingo Games Skypark, Limketkai Center, Cagayan de Oro City Aug. 9, 2017 Mar. 2, 2019 Bingo Games Island City Mall, Tagbilaran City, Bohol Oct. 13, 2017 Mar. 31, 2019 Bingo Games G/F Bldg. 2, Door 3-5, G. Alkuino Bldg. Purok 2, Sayre Highway, Poblacion, Valencia City, Bukidnon Aug. 9, 2017 Apr. 11, 2019 Bingo Games Ground Floor, Magdalino Building, Osmea St.,Tandag City, Surigao del Sur Nov. 16, 2017 May 16, 2019 Bingo Games Deofavente Bldg.,Gov. Rosales Avenue, Butuan City Jan. 29, 2018 May 26, 2019 Bingo Games GRC Bldg.,M. Roxas St.,Brgy. 34, Cagayan de Oro City Nov. 16, 2017 June 20, 2019 Bingo Games Iligan Pagoda Complex, Baslayan St. cor. Quezon Ave.,Iligan City Mar. 9, 2018 June 26, 2019 Bingo Games CFA Bldg.,Vamenta Boulevard, Zone 2, Brgy. Carmen, Cagayan de Oro City Feb. 20, 2018 Sept. 9, 2019 Bingo Games Ground Floor, Z Arcade, Brgy. Puerto, Cagayan de Oro City Jan. 22, 2018 Oct. 7, 2019 Bingo Games Ongco Holdings, Inc. Building, #1720 Agusto Francisco cor. Agua Marina Sts.,San Andres, Bukid, Manila Mar. 26, 2018 Mar. 23, 2021 DMC is also a holder of Certificates to Operate PAGCOR e-Games Station likewise issued by PAGCOR as follows: Gaming License Reg. No. Gaming Activity Gaming Site Date of Issuance Date of Expiration Electronic Games Ground Flr.,CDSONS Bldg.,Cruz Taal cor. J. Rizal Sts.,Cagayan de Oro City, Misamis Oriental Feb. 3, 2015 Feb. 2, 2017 Electronic Games Ground Floor, Bldg. 2 Door 3, 4, 5, G. Alkuino Bldg.,Purok 2, Sayre Highway, Poblacion, Valencia City, Bukidnon Apr. 12, 2016 Apr. 11, 2017 Electronic Games Ground Floor, Deofavente Bldg.,Gov. Rosales Avenue, Butuan City Sept. 22, 2015 Sept. 25, 2017 Electronic Games Ground Floor, Pereyras Bldg.,Roxas St.,Tagum City, Davao del Norte Dec. 15, 2015 Dec. 4, 2017 Electronic Games Ground Floor, Food Strip, Rosario Arcade, Limketkai Center, Cagayan de Oro City May 17, 2016 June 20, 2018 Electronic Games 2nd Flr.,Unit C504 Harmonic Seven Building, 2543 Tejeron cor. Sampaguita Sts.,Sta. Ana, Manila July 4, 2017 July 4, 2018 Electronic Games Ground Floor Z Arcade (formerly Jubo Puerto Plaza),National Highway, Brgy. Puerto, Cagayan de Oro City Mar. 29, 2017 Oct. 8, 2018 Electronic Games Ground Floor, Sinco Building, Bulua Highway, Cagayan de Oro City July 26, 2017 Nov. 4, 2018 Electronic Games Ground Floor, CFA Building, Vamenta Boulevard, Brgy. Carmen, Cagayan de Oro City July 26, 2017 Mar. 14, 2019 In reply, please be informed that requests for rulings on issues covered by an on-going audit is a "No Ruling Area" under Section 2 (r) of Revenue Bulletin (RB) No. 01-03 which provides, to wit: " SECTION 2. List of No-Ruling Areas. The following shall hereby be construed and identified as "No-Ruling Areas": xxx xxx xxx r) Issue/s or transactions involving directly or indirectly the same taxpayer/s which is/are the subject of an investigation, on-going audit ,administrative protest, claim for refund or issuance of tax credit certificate, collection proceedings, or a judicial appeal subject to Section 3 hereunder. Accordingly, the taxpayer must submit and include the following statement in the request for ruling: 'The issue/s or transaction subject of the request is not under investigation, on-going audit, administrative protest, claim for refund or issuance of a tax credit certificate, collection proceedings, or a judicial appeal of the taxpayer/s involved." (Emphasis and underscoring supplied) Premises considered, since DMC has a pending assessment with the Large Taxpayers Service (LTS),this Office declines to issue a ruling on the issue raised. Please be guided accordingly. Very truly yours, (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue