BIR Ruling [UN-016-96]

January 10, 1996 BIR RULING [UN-016-96] Lopez Sugar Corporation Liberty Bldg., Pasay Road Legaspi Village, Makati City Attention: Ms . Mary Ann Cooper Pernes President Gentlemen : This refers to your letter dated May 18, 1995 requesting for a ruling that you are exempt from the payment of the creditable withholding tax prescribed under Revenue Regulations No. 12-94 on your sale of refined sugar to your customers belonging to the top 5,000 corporations. It is represented that you are registered with the Board of Investments (BOI) as a new producer of Refined Sugar on a non-pioneer status; that under your registration, BOI granted you an Income Tax Holiday for four (4) years starting January 1995 to December 1998; and that you started your commercial operations on refined sugar on February 1995. In reply, please be informed that under Section 4(b)(2) of Revenue Regulations No. 6-85 as amended by Revenue Regulations No. 12-94 implementing Section 50(b) of the Tax Code, as amended, the withholding tax prescribed in these regulations shall not apply to income payments to persons enjoying exemption from payment of income taxes pursuant to the provisions of the Omnibus Investments Code of 1987, as amended. Accordingly, since you are registered with the BOI and enjoying exemption from the payment of income taxes for a period of four (4) years from January, 1995 until December 1998 in accordance with the Omnibus Investments Code of 1987, this Office is of the opinion as it hereby holds that you are exempt from the creditable expanded withholding tax imposed under Revenue Regulations No. 6-85 as amended by Revenue Regulations No. 12-94 on income payments received on your sale of refined sugar to your customers belongings to the top 5,000 corporations from January 1995 to December 1998. (BIR Ruling No. 163-94 dated December 2, 1994) aisadc Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)