BIR Ruling [UN-026-95]

January 13, 1995 BIR RULING [UN-026-95] Country Linens & Laces Mfg., Inc. 35 Lakeview Drive, Bagong Ilog Pasig, Metro Manila Attention: Mr . Siegfriedo A . Veloso General Manager Gentlemen : This refers to your letter dated October 19, 1994, requesting exemption from payment of the expanded withholding tax imposed under Revenue Regulations No. 12-94 on the ground that you have suffered operational losses for the Fiscal Years ended March 31, 1993 and March 31, 1994 as shown in your audited Income Statements for said years attached therein. cdtech In reply, please be informed that under Section 4(d) 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 therein prescribed shall not apply to income payments of a payee who suffered net operating losses during the immediately preceding two (2) years. Such being the case, and since you have incurred net operating losses for the years 1993 (April 1, 1992 to March 31, 1993) and 1994 (April 1, 1993 to March 31, 1994), this Office is of the opinion as it hereby holds that you are exempt from the payment of the creditable withholding tax prescribed under Revenue Regulations No. 12-94. (BIR Ruling No. UN-275-94 citing BIR Ruling No. 126-94, dated August 15, 1994) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation the facts turned out to be different, then this ruling shall be considered null and void. Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)