BIR Ruling [UN-216-95]

June 15, 1995 BIR RULING [UN-216-95] Chemphil Specialty Chemicals Corp. Chemphil Building 851 Antonio S. Arnaiz Ave. Makati, Metro Manila Attention: Ms . Imelda I . Sebastian Asst . Group Controller Gentlemen : This refers to your letter dated September 12, 1994 stating that your company is registered with the Board of Investments (BOI) as a new producer of chemical products specifically coco-chemicals (i. e. other coconut oil fractions and/or their derivatives) on a non-pioneer status under the Omnibus Investments Code of 1987, otherwise known as Executive Order No. 226. Based on the foregoing, you now in effect request for exemption from the creditable withholding tax prescribed under Revenue Regulations No. 12-94. In reply, please be informed that under 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 whose exemption from the payment of income tax was extended for a period of two (2) years or from July 1994 to June 1996, 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. 6-85 as amended by Revenue Regulations 12-94 on income payments received by your company. (BIR Rulings No. 163-94 dated December 2, 1994) Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)