BIR Ruling No. 339-2016

BUREAU OF INTERNAL REVENUE REPUBLICOFTHE PHIIIPPINES DEPARTMENT OF FINANCE

Quezon City

Revenue Bulletin No.1-2003

#339-2016

St Avenue cor.25th Street Bonifacio Global CityTaguig YARA FERTILIZERS PHILIPPINES,INC Unit 160516th Floor,One Global Place 6-29-2016

AttentionMarilvn C.Barallas Finance Manager

Gentlemen:

Fertilizers Philippines. Inc.(the Company, for legal opinion on whether or not the sale of four (4) parcels of land executed by the Company in favor of Ferex Agrochem Development Corporation is subject to the value-added tax (VAT. This refers to your letter dated July 11.2013 requesting on behalf of Yara

It is represented that the Companv is a non-VAT registered entity organized and existing under the laws of thc Philippines with address at 16t Floor One Global Place Building.Sth Avenue.Global CityTaguig that the primary purpose for which the Company was organizcd is to conduct importing.selling and distributing fertilizers on a wholesale basis:that the Company had four4 parcels of land used by the Company

as warehouses for the storage of its fertilizer products:that on December 10,2012.the

Company sold the aforesaid parcels of land to Ferex Agrochem Development Corporation for a total consideration of Phr and that the Revenue District Office RDO) No.3,San Fernando City.La Unon is subjecting the sale of the aforesaid parcels of land to VAT pursuant to Revenue Regulations (RRNo.16-201 amending RR No.16-2005.

In reply, please be informed that the issue is subject of a pending investigation and/or protest.Thus,pursuant to Scction 2r of Revenue Bulletin No.-2003 on No

Ruling Areasto quote

SECTION2 List of No-Ruling Areas.-The following shall hereby he

construed and identified as "No-Ruling Areas"

XXX XXX XX

taxpavers which is/are the suhject of an investigutionon-going adit r) Issues or transactions involving directv or indirecttv the same

administrutive protest, claims for refund or issuance of tux credit

certificute XXX XX XXX

this Office cannot grant your request for legal opinion.

Very truly yours.

KIMS.JACINIO-HENARFS Commissionef of Internal Revenise

042344