BIR Ruling [UN-213-95]

June 13, 1995 BIR RULING [UN-213-95] Sycip, Salazar, Hernandez and Gatmaitan 105 Paseo de Roxas 1200 Makati, Metro Manila Attention: Atty . Ernesto S . Taino, Jr . Gentlemen : This refers to your letter dated April 18, 1995 requesting confirmation of your opinion that your client, ISS Philippines, Inc., is exempt from the creditable expanded withholding tax prescribed under Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94. cdtech It is represented that your abovenamed client is registered with the Export Processing Zone Authority under Certificate of Registration No. 93-17 as a manufacturer of precision aluminum diecasting dies and precision aluminum diecasting parts on a pioneer status; and that your client is granted an income tax holiday of six (6) years from the date of its commercial operations which started in the middle part of 1994. In reply, please be informed that Section 4 (b) (2) of Revenue Regulations No. 6-85 as amended by Revenue Regulations No. 12-94 provides that the withholding tax therein prescribed 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. Accordingly, your opinion that ISS Philippines, Inc. is exempt from the creditable expanded withholding tax of 1% imposed under Section 1(n) of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94, on income payments received from any of the top 5,000 corporations as a local supplier of precision aluminum diecasting dies and precision aluminum diecasting parts is hereby confirmed. (BIR Ruling No. 163-94; UN 352-94). cdll Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)