BIR Ruling [UN-156-95]

April 12, 1995 BIR RULING [UN-156-95] Tri-Asia Paper Mill, Inc. 6th Floor Executive Bldg. Center, Sen. Gil Puyat Ave. Makati, Metro-Manila Attention: Mr . Felix K . Tan Vice-President Gentlemen : This refers to your letter dated February 8, 1995 requesting for the issuance of a certificate of exemption from the expanded withholding tax pursuant to Revenue Regulations No. 12-94. aisadc It is represented that Tri-Asia Paper Mill, Inc. is a BOI registered enterprise, with Certificate of Registration No. EP92-402 dated January 7, 1993. One of the incentives provided by the Omnibus Investments Code of 1987 is an income tax holiday of three (3) years from July 1993 or actual start of commercial operation whichever comes first but not earlier than the date of registration. In reply, please be informed that pursuant to 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 from July 1993 or from the actual start of commercial operation whichever comes first in accordance with the Omnibus Investments Code of 1987, 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. 12-94 on income payments received by your company. (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)