BIR Ruling [UN-172-95]

April 24, 1995 BIR RULING [UN-172-95] Solid Development Corporation 1927 Jorge Bocobo Street Malate, Metro-Manila Attention: Mr . Alfonso P . Castillo Vice-President Gentlemen : This refers to your letter dated March 13, 1995 requesting for the issuance of a certificate of exemption from the expanded withholding tax pursuant to Revenue Regulations No. 12-94. cdtech Documents submitted show that Solid Development Corporation, a BOI registered enterprise with Certificate of Registration Nos. EP-93-346 and EP-94-625, is an expanding producer of spun yarn on a non-pioneer status under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987. 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 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 tax for a period of three (3) years from October 1994 or from the actual start of commercial operations 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 12, 1994) Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)