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ITAD Ruling
ITAD Ruling
014-01
Gentlemen :
This refers to your application on behalf of your client, Edsamail Asia Private
Ltd. (EAPL), requesting confirmation of your opinion that the income derived by
EAPL is income from sources outside the Philippines and therefore not subject to
income tax, withholding tax and value-added tax in accordance with the Tax Code of
1997 and pursuant to the RP-Singapore Tax Treaty.
"Article 7
BUSINESS PROFITS
"Article 5
PERMANENT ESTABLISHMENT
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enterprise is wholly or partly carried on.
a) A seat of management;
b) A branch;
c) An office;
e) A factory; ISCTcH
f) A workshop;
3. ...
Considering that EAPL does not have permanent establishment located in the
Philippines and its local agents did not qualify as to constitute permanent
establishment situated in the Philippines, your opinion that the income of EAPL from
advertising fees paid by local agents is not subject to Philippine income tax and
consequently to the withholding tax pursuant to the RP-Singapore Tax Treaty is
hereby confirmed. (BIR Rulings 279-88 & 219-85)
Copyright 2017 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Taxation Encyclopedia (2017.1) 4
this ruling shall be null and void.
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