BIR Ruling [UN-209-95]

June 9, 1995 BIR RULING [UN-209-95] Puerto Azul Beach Hotel P. O. Box 7773 NAIA Airmail Distribution Center Pasay City Attention: Ms . Ma . Ana O . Jalimao Comptroller Gentlemen : This refers to your letter dated October 29, 1994 stating that you have suffered net operating losses of P137,981,065.00 in 1993 and P98,664,501.00 in 1992. In view thereof, you now request for exemption from the .5% withholding tax on payments made by credit card companies. cdtech In reply, please be informed that pursuant to Section 3(d) of Revenue Regulations No. 12-94 amending Revenue Regulations No. 6-85, otherwise known as the "Expanded Withholding Tax Regulations" stating "SEC. 3, Section 4 of Revenue Regulations No. 6-85 is hereby amended to read as follows: SEC. 4. Exemption from Withholding The withholding of tax prescribed in these regulations shall not apply to income payments in the following cases: xxx xxx xxx (d) In the case of a payee who suffered net operating losses during the immediately preceding two (2) tax years; xxx xxx xxx" this Office is of the opinion as it hereby holds that you are exempt from the .5% withholding tax on payments made by credit card companies. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, the facts turned out to be different, then this ruling shall be considered null and void. (BIR Rulings No. 126-94 dated August 15, 1994) Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)