BIR Ruling [UN-126-95]

March 8, 1995 BIR RULING [UN-126-95] Indo Phil Acrylic Mfg. Corp. 14th Floor, China Bank Bldg. Paseo de Roxas cor. Villar Street Makati, Metro Manila Attention: S . S . Dalmia VP- Finance and Commerce Gentlemen : This refers to your letter dated March 6, 1995 stating that your company is registered with the Board of Investments as an Expanded Producer of Spun Yarn on a preferred non-pioneer status under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987, with Certificate of Registration No. EP 93-334. Based on the foregoing, you now request for exemption from the 1% creditable expanded withholding tax prescribed under Revenue Regulations No. 12-94. In reply, please be informed that under Section 4(b)(c) 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 therein shall not apply to income payments to persons enjoying exemptions 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 three (3) years from April 14, 1994 or actual start of commercial operation whichever comes first, but not earlier than the date of registration, the income payments made to you as a local supplier of spun yarn by any of the top 5,000 corporations as determined by the Commissioner shall not be subject to the 1% creditable expanded withholding tax prescribed in Section 1(n) of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94. (BIR Ruling No. 163-94, dated December 2, 1994) cd Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)