BIR Ruling [UN-297-95]

August 11, 1995 BIR RULING [UN-297-95] Sycip Gorres Velayo & Co. 6760 Ayala Avenue, Makati, Metro Manila Attention: Atty . J . A . Osana Tax Division Gentlemen : This refers to your letter dated March 28, 1995, requesting on behalf of your client, First Philippine International Bank, for the issuance of a certificate of Exemption from Withholding Tax pursuant to Section 4 (d) of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94. It appears that First Philippine International Bank (formerly Producers Bank of the Philippines) is a domestic corporation duly registered with the SEC; that it is under the conservatorship of the Bangko Sentral ng Pilipinas (BSP) since 1984; and that it incurred losses from their banking operations during the taxable years 1992 and 1993 in the amounts of P85,330,658 and P118,412,696, respectively. In reply, please be informed that since First Philippine International Bank's income tax returns for taxable years 1992 and 1993 reflect net losses in the amounts of P85,330,658 and P118,412,696 respectively, the income payments made to it are exempt from the 1% creditable expanded withholding tax pursuant to Section 4 (d) of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94, for the year 1994. 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 Ruling No.. 126-94 dated August 15, 1994). cdtech Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)