BIR Ruling [UN-171-95]

March 30, 1995 BIR RULING [UN-171-95] Oriental Mahogany Woodworks, Inc. No. 18 First Avenue, Bagumbayan Tanyag, Taguig, Metro Manila Attention: Mr . Jaime L . Ledesma President Gentlemen : This refers to your letter dated March 16, 1995 requesting for a ruling exempting you from the payment of expanded withholding tax imposed under Revenue Regulations No. 12-94 on the ground that you suffered net operating losses in 1992 and 1993. cdtech Documents submitted show that per your audited financial statements for the years ended December 31, 1992 and 1993 particularly your Statements of Income and Deficit, you suffered losses in the respective amounts of P13,436,579.00 and P22,260,491.00 for the years 1992 and 1993. In reply, please be informed that under Section 4(d) 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 payee who suffered net operating losses during the immediately preceding two (2) taxable years. Such being the case, and since you have incurred net operating losses during the immediately preceding two (2) consecutive years from 1992 to 1993, this Office is of the opinion as it hereby holds that you are exempt from the creditable expanded withholding tax prescribed under Revenue Regulations No. 12-94 on income payments to you for the year 1994. (BIR Ruling No. 126-94 dated August 15, 1994) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)