BIR Ruling [UN-093-95]

March 7, 1995 BIR RULING [UN-093-95] Dragon Textile Mills, Inc. 888 Alvarado St. Binondo, Manila Attention: Mr . Gerardo C. Reyes Comptroller Gentlemen : This refers to your letter dated December 6, 1994 requesting for a certificate of exemption from the creditable withholding tax of 1% on income payments made to you under the provisions of Section 3 of Revenue Regulations No. 12-94, amending Sec. 4 of R.R. No. 6-85. It is represented that you are registered with the Board of Investments under Certificate of Registration No. EP 89-741 dated October 17, 1989 and that you are enjoying income tax holiday until August 31, 1996. In reply, please be informed that Section 4 (b) (2) of R.R. No. 6-85, as amended by R.R. No. 12-94, provides that the withholding tax therein prescribed shall not apply to income payments to persons enjoying exemption from the payment of income taxes pursuant to the provisions of the Omnibus Investments Code of 1987, as amended. In view thereof and since you are a BOI-registered enterprise enjoying exemption from the payment of income taxes pursuant to the provisions of Section 39(a)(1) of the said Omnibus Investments Code of 1987, you are therefore not subject to the 1% expanded creditable withholding tax prescribed under Section 1(a) of said R.R. No. 6-85, as amended by R.R. No. 12-94. (BIR Ruling No. 163-94 dated December 2, 1994). This ruling is being issued on the basis of the foregoing facts as represented. However, if it will be disclosed upon investigation that the facts are different, then this ruling shall become null and void. Very truly yours, ALICIA P. CLEMENO Assistant Commissioner Legal Service