Creation of System of Incentives for Outstanding Performance by Participants in the Overseas Employment Program

November 15, 1989 VAT RULING NO. 283-89 50 (f) - 073 (BIR) -89-283-89 Eveready Battery Company Phils., Inc. 12th Floors, Cibeles Bldg. Ayala Avenue, Makati Metro Manila Attention: Ms . Imelda B . Dizon Finance & Accounting Manager Gentlemen : This refers to your letter dated August 31, 1989 questing classification as to which of the two BIR Rulings dealing on the expanded withholding tax should be followed a purposes of computing the withholding tax deducted from payments to service suppliers. In reply, please be informed that BIR Ruling No. 073-89 dated April 12, 1989 which states that VAT is excluded from the tax base in computing the creditable expanded withholding tax should be followed since the same is of later date. In other words, BIR Ruling No. 564-88 which states that the basis in computing the expanded withholding tax is inclusive of VAT is deemed revoked by said BIR Ruling No. 073-89. cdtech Very truly yours, JOSE U. ONG Commissioner of Internal Revenue By: VICTOR A. DEOFERIO, JR. Deputy Commissioner