BIR Ruling [UN-102-95]

March 10, 1995 BIR RULING [UN-102-95] Luista Realty Corporation JCS Building 119 de la Rosa St. Legaspi Village Makati, Metro Manila Attention: Mr . Antonio V . Aguilar Asst . Vice President Gentlemen : This refers to your letter dated February 23, 1995 stating that your company is registered with the Board of Investments as existing and expanding developer of an industrial estate on a preferred non-pioneer status under the Omnibus Investments Code of 1987, otherwise known as Executive Order No. 226. cdtech Based on the foregoing, you now in effect request for exemption from the creditable withholding tax prescribed under Revenue Regulations No. 12-94. 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 tax 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 tax for a period of three (3) years to be reckoned from start of commercial operation in October 1991 or actual start of selling or leasing of Phase 2, whichever comes first, but in no case earlier than the date of registration of the project, 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 12-94 on income payments received by your company. (BIR Rulings No. 163-94 dated December 2, 1994) Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)