BIR Ruling [UN-310-95]

August 21, 1995 BIR RULING [UN-310-95] Toby's Philippines, Inc. 355 Maysan Road Valenzuela, Metro Manila Attention: Ms . Arsenia C . Garcia Accountant Gentlemen : This refers to your letter dated April 10, 1995 requesting in affect for a ruling that you are exempt from the payment of the 1% creditable withholding tax imposed under Revenue Regulations No. 6-85 as amended by Revenue Regulations No. 12-94 since you are a BOI registered corporation holding a pioneer status entitled, among others, to an income tax holiday. cd Documents submitted show that you are a domestic corporation duly registered with the Board of Investments (BOI) in accordance with the provisions of the Omnibus Investments Code of 1987 under Certificate of Registration No. DP91-324; that you are registered as a new producer of Fiber glass Reinforced Pipes holding a pioneer status; and that under the specific Terms and Conditions of your said registration with the BOI you are entitled to, as an incentive, to an income tax holiday for six (6) years from September 1992 or actual start of commercial operation whichever comes first but not earlier than the date of registration. 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 of tax prescribed in these regulations shall not apply to income payments to persons enjoying exemption from payment of income taxes pursuant to the provisions of the Omnibus Investment Code of 1987, as amended. Such being the case, and since you are registered with the BOI in accordance with the provisions of the Omnibus Investments Code of 1987 enjoying income tax holiday, this Office is of the opinion as it hereby holds that you are exempt from the payment of the 1% creditable expanded withholding tax imposed under Revenue Regulations No. 6-85 as amended by Revenue Regulations No. 12-94 from July 16, 1994 (the effectivity of Revenue Regulations No. 12-94) up to the expiration of your income tax holiday of six (6) years per your BOI registration. (BIR Ruling No. 057-95 dated March 18, 1995. cdta Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Rev. Executive Assistant Legal Service