VAT Ruling No. 109-89
VAT Ruling No. 109-89 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Apr 22, 1989
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April 22, 1989 VAT RULING NO. 109-89 Ms. Emiliana P. Crisostomo Vice-President Sta. Ines Melale Corporation 3rd Floor, Prince Building 117 Rada Street, Legaspi Village Makati, Metro Manila M a d a m : This refers to your letter dated May 23, 1988 seeking clarification on whether or not the contract of lease (company), and the lessee, Extensive Wood Processing Corporation, is a transaction which falls under the creditable withholding tax and is exempt from the value-added tax pursuant to Sec. 103 (q) of the Value-Added Tax Law. In reply thereto, please be informed that the leasing of real property, together with the accessories (plywood mill, sawmill and kiln dryer), is exempt from the 10% value-added tax in accordance with Section 103 (q) of the Tax Code, as amended by the Value-Added Tax Law. On the other hand, the lease is subject to 5% creditable withholding tax pursuant to Revenue Regulations No. 6-85. TSIaAc Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue By: (SGD.) EUFRACIO D. SANTOS Deputy Commissioner (Officer-in-Charge)
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