BIR Ruling [UN-449-95]

December 22, 1995 BIR RULING [UN-449-95] Radio Communications of the Philippines, Inc. 711 E. de los Santos Avenue Cubao 1109, Quezon City Attention: Mr . Alfredo J . Non SVP-Finance & Administration Gentlemen : This refers to your letter dated November 15, 1995, requesting for exemption from the creditable expanded withholding tax imposed under Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94, on the ground that you have suffered net operating losses during the years 1993 and 1994. Documents submitted, i.e., income tax returns and audited financial statements for the years ended December 31, 1993 and 1994 show that you have suffered net operating losses in the respective amounts of P53,969,478.00 and P89,285,771.00. In reply, please be informed that under Section 4 (d) 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 therein prescribed shall not apply to income payments of a payee who suffered net operating losses during the immediately preceding two (2) years. Accordingly, since you have suffered net operating losses during the years 1993 and 1994, your income payments shall not be subject to the creditable expanded withholding tax prescribed in said Revenue Regulations No. 12-94 amending Revenue Regulations No. 6-85. (BIR Unnumbered Ruling No. 061-95 dated February 13, 1995, citing BIR Ruling No. 126-94 dated August 15, 1994). cdll This ruling is being issued on the basis of your representations and will be considered null and void if it turns out later that the facts are not as represented. Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)