BIR Ruling [UN-030-95]

January 16, 1995 BIR RULING [UN-030-95] Nippon Eoei Co., Ltd. 4th Floor, Pacific Star Bldg. Makati Ave. cor. Sen. Gil Puyat Ave. Makati, Metro Manila Attention: Mr . Takayasu Tsuyusaki Chief, Representative, Manila Office Gentlemen : This refers to your letter dated August 25, 1993 stating that BIR Ruling No. 25(b)-129-87-191-87 dated July 2, 1987 exempt your company from Philippine corporate income tax and other internal revenue taxes on business; that said ruling clearly states that: "if your furnishing of services is effected under an agreement between the governments of two (2) contracting states regarding economic and technical cooperation, the enterprise shall notwithstanding any provisions of this article, not be deemed to have a permanent establishment in that other contracting state;" that accordingly, this Office issued an opinion that NIPPON EOEI CO., LTD. is not subject to Philippine corporate income tax and other internal revenue taxes on business; and that inasmuch as it is already more than six (6) years now since this Office issued said ruling, you feel that there is now a need for restatement of such ruling and/or clarification as to its validity even as your services are still being effected through economic and technical cooperation between the Government of Japan and the Government of the Philippines. cdtech Based on the foregoing representations, you are now requesting a ruling confirming the validity of BIR Ruling No. 25(b)-129-87-191-87 dated July 2, 1987. In reply, please be informed that inasmuch as the RP-Japan Tax Treaty has been in effect since January 1, 1981, this Office is hereby confirming the validity of BIR Ruling No. 191-87 dated July 2, 1987 with the clarification that the last sentence of page one (1) of said ruling should read in part as "Article 5 paragraph 6 of said treaty" instead of "Section 6 of said treaty." cdta Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)