BIR Ruling [UN-264-95]

August 9, 1995 BIR RULING [UN-264-95] Honda Parts Manufacturing Corporation P.O. Box 2094 Makati, Central Post Office 1262 Makati, Metro Manila Attention: Ms . Edna O . Remo DMD Manager Gentlemen : This refers to your letter dated March 29, 1995 addressed to our Revenue District Office No. 57, San Pedro, Laguna, which was endorsed to us on June 7, 1995 requesting for a withholding exemption certificate by virtue of Revenue Regulations No. 12-94. It is represented that HONDA MANUFACTURING CORPORATION located in the Export Processing Zone, Laguna Technopark, Phase II, is holding EPZA Certificate of Registration No. 93-05 issued on January 10, 1990 as an export enterprise. 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 the 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, and since you are registered with EPZA and enjoying exemption from the payment of income taxes for a period of six (6) years reckoned from the start of commercial operation in accordance with the provisions of the Omnibus Investments Code of 1987, this Office is of the opinion, as it hereby holds, that you are exempt from the payment of the creditable withholding tax imposed under Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94, on income payments, received by your company during the aforementioned period. (BIR Ruling No. 20-95 dated February 13, 1995). 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. Very truly yours, ALICIA P. CLEMENO Assistant Commissioner Legal Service