BIR Ruling [UN-226-95]

June 16, 1995 BIR RULING [UN-226-95] Agnus Realty & Development Corporation 978 Gen. Kalentong Mandaluyong, Metro Manila Attention: Mr . Noel S . Sunga Managing Director Gentlemen : This refers to your letter dated June 8, 1995 stating that you have suffered net operating losses of P135,963.09 and P217,048.49 during the year 1993 and 1994, respectively. In view thereof, you now request for exemption from the creditable withholding tax on payments made to your corporation, including the proceeds of your sale of real property. 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 creditable withholding tax on payments made to your corporation, including the proceeds of your sale of real property. 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. (BIR Rulings No. 126-94 dated August 15, 1994). Very truly yours, ALICIA P. CLEMENO Assistant Commissioner Legal Service