Beruflich Dokumente
Kultur Dokumente
RP-Singapore Article 12
BIR Ruling No. 078-97
Gentlemen :
This refers to your letter dated August 9, 2000 on behalf of Van Seumeren
(Philippines) Inc. (VSPI) requesting con rmation of your opinion that the remittances of
VSPI to Van Seumeren (Singapore) Pte Ltd (VVS) of rental payments for the use of one
(1) unit 250 Crawler Crane be exempt from withholding tax pursuant to Article 5 and
Article 7 paragraph (1) of the RP-Singapore Tax Treaty.
It is represented that VVS is a nonresident foreign corporation duly organized
and existing under the laws of Singapore with principal address at 51 Newton Road
#19-07/08, Goldhill Plaza, Singapore; that it is not registered as a corporation or
partnership and is not licensed to do business in the Philippines as per certi cation
dated September 13, 2000 issued by the Securities and Exchange Commission; that
VSPI is a domestic corporation organized and existing under the laws of the Republic
of the Philippines with principal o ce at PDI Condominium, Archbishop Reyes Avenue,
Cebu City; that VSPI is engaged in the leasing of cranes, specialized equipment for
heavy lifting and transportation for onshore and offshore industries on a turnkey basis
and sea transportation thereof or any services related thereto or connected therewith;
that to augment the machineries and equipment being leased by VSPI, it entered into a
Lease Agreement with VSS for the lease of one (1) unit Crawler Crane; that in
consideration thereof, VSPI shall pay rental payments of US$35,000.00 per month from
May 1, 2000 to June 30, 2000.
In reply thereto, please be informed that Article 12 of the RP-Singapore Tax
Treaty provides, viz:
"Article 12
Royalties
"(1) Royalties arising in a Contracting State and paid to a resident of the
other Contracting State may be taxed in that other State.
"(2) However, such royalties may also be taxed in the Contracting State in
which they arise, and according to the law of that State, but, if the recipient is the
beneficial owner of the royalties, the tax so charged shall not exceed: SDIaCT
(a) in the case of the Philippines, 15 per cent of the gross amount of
CD Technologies Asia, Inc. 2018 cdasiaonline.com
the royalties, where the royalties are paid by an enterprise registered with
the Philippine Board of Investment and engaged in preferred areas of
activities and also royalties in respect of cinematograph films or tapes for
television or broadcasting;SAEHaC
(b) in the case of Singapore, where the royalties are approved under
the Economic Expansion Incentives (Relief from Income Tax) Act of
Singapore, the royalties shall be exempt;
c) in all other cases, 25 per cent of the gross amount of the
royalties.
"(3) The term "royalties" used in this Article means payments of any kind
received as a consideration for the use of, or the right to use, any copyright of
literary, artistic or scienti c work including cinematograph lms and lms or
tapes for television or broadcasting, any patent, trademark, design or model, plan,
secret formula or process, or for the use of, or the right to use, industrial,
commercial or scienti c equipment , or for information concerning industrial,
commercial or scientific experience."