August 31, 2018

Narcilita U. Sy
Accounting Manager
Monde Nissin Corporation
20th & 21st Floors, 6750 Office Tower,
Ayala Avenue, Makati City

Dear Madame:

Greetings!

This letter is an appeal on the manner to which your company withholds taxes from payments
to Chong Hua Hospital for medical services rendered and the corresponding issuance of
Certificate of Creditable Taxes Withheld at Source (BIR Form No. 2307). Per current practice,
your company withholds the following: (a) 2% withholding tax (WC120) prime contractors/sub-
contractors for hospital bills, and (b) 15% withholding tax (WC011) for professionals-
corporate for professional fees.

We believe item (a) is within the requirements of tax laws, however, we would like to correct
on item (b) as we deem it improper to withhold 15% corporate professional tax on payments
to Chong Hua Hospital. What should be withheld from your payments to Chong Hua Hospital
is only the 2% on the hospital bill. Therefore, if your payments to us include both for the hospital
bill and the professional fees, what should be paid and/or provided to us are (1) after-tax
amount for hospital bill including Form 2307, and (2) gross amount of professional fees. With
regard to the professional fees, Chong Hua Hospital will be the one to withhold and remit the
individual professional withholding tax (5%/10%) to BIR while our payment to the medical
practitioners will be net of tax together with our own issuance of Form 2307 to them. The
foregoing is a reiteration of our advisory to all our corporate customers last June 22, 2018 thru
Memo FIN-2018-09. Please see attached copy of the memo for your reference.

In line with this, we would like to request for the reissuance of your payment for the transaction
with the following details:

Official Receipt No. 4886368

Date August 8, 2018

Hospital Bill Actual Should-be Difference

Amount billed P97,489.35 P97,489.35 -
Less: Withholding Tax P2,312.39 P1,949.79 P362.60
Net Payment P95,176.96 P95,539.56 (P362.60)

Professional Fees Actual Should-be Difference

Amount billed P100,600.00 P100,600.00 -
Less: Withholding Tax P15,090.00 - P15,090.00
Net Payment P85,510.00 P100,600.00 (P15,090.00)

Accordingly, since we consider above payment as incorrect we will treat the transaction as a
pending receivable from your account.
We hope that this clears the matter on your end. However, if you have concerns/clarifications
please feel free to contact me personally at 0917-558-8440 or thru e-mail at
gil_arrubio@chonghua.com.ph.

Sincerely,

GIL CHRIST O. ARRUBIO

Finance Manager – Accounting
Chong Hua Hospital