BIR Ruling No. 003-2023

BUREAU OF INTERNAL REVENUE REPUBLICOF THE PHILIPPINES DEPARTMENT OF FINANCE

Legaspi Village,Makati City Unit 610,Cattleya Building 235 Salcedo Street ENDEC,INC. Sec.108B2of the National Internal Revenue Code (Tax Code of 1997,as BIR Ruling No.134-18, BIR Ruling No.413-12:VAT Ruling No.010-05 VAT Ruling No. 018-05 amended; RR 4-2007: YAT 0032023 JAN 19 2023

Gentlemen:

amended, and (2) that Endec is entitled to apply for the refund of any excess or unutilized input provided in Section I 12 (A) of the same Code. corporation and a VAT-registered taxpayer, in favor of Black and Veatch Special Projects Corp. VAT due or paid attributable to its zero-rated sale of services to BVSPC,subject to the conditions ("BVSPC" for brevity), a corporation organized under the laws of the state of Missouri, U.S.A. and a foreign corporation not engaged in trade or business in the Philippines, is subject to VAT at zero percent (0%) rate pursuant to Section 108 (B) (2) of the Tax Code of 1997 ("Tax Code"), as that: the consultancy services rendered in the Philippines by Endec Inc."Endec)a domestic This refers to your letter dated August 5, 2022 requesting for confirmation of your opinion

Defense tasked to execute the Cooperative Threat Reduction Integrating Contract (CTRIC under the CTRA. Strengthening Maritime Security, and other purposes (CTRA). The Defense Threat Reduction Agency ("DTRA") is the implementing agency of the United States of America's Department of Philippines and the Government of the United States of America entered into an Agreement Concerning Cooperation in Countering the Proliferation of Weapons of Mass Destruction It is represented that on October 15, 2015. the Government of the Republic of the

support, technical expertise, advisory on host nation laws and regulations, standards evaluation, studies and reports, and in addition, furnish labor, equipment, and materials. In execution of the CTRA, BVSPC, as prime contractor to implement the CTRIC in the Philippines, entered into a Basic Ordering Agreement with ENDEC to perform consultancy services in the areas of planning, organization, management, logistics, training, sustainment To execute this Agreement, the DTRA entered into a Task Order Agreement with BVSPC

in the Philippines, ENDEC shall be paid in foreign currency -- specifically United States dollars consultancy services to be rendered by ENDEC to BVSPC for the purpose of executing the CTRIC (US$). The Basic Ordering Agreement further provides that in consideration of the various

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Hence. this request.

In support of your request, you have submitted the following documents, to wit:

5. 6 3 4. 1. 2 Copies of VAT zero-rated Sales Invoices and Official Receipts issued by Endec to that it has no permanent establishment in the Philippines, duly authenticated by the Philippine Consulate/Consular Office/Embassy located at Washington D.C., United States; and BVSPC. a Certificate of the Executive Vice President and Secretary of BVSPC attesting that BVSPC is a corporation registered in accordance with the laws of the United States and Articles of Incorporation and By-Laws of BVSPC (as amended) showing that BVSPS is a corporation duly incorporated under the laws of the State of Missouri, U.S.A. and Commission (SEC) that BVSPC does not appear in the records of the SEC to be Judicial Affidavit of Endec Secretary attesting that the services under the Consultancy Agreement were rendered to a non-resident foreign corporation and that such services were performed in the Philippines: Basic Ordering Agreement between BVSPC and Endec, Inc. dated March 25, 2021; Certificate of Non-Registration of Company issued by the Securities and Exchange registered as a corporation or partnership in the Philippines; BIR Certificate of Registration (COR)

implemented by Section 4.108-5 (b) (2) of Revenue Regulations (RR) No. 16-2005, as amended by RR No. 4-2007 states that In reply thereto, please be informed that Section 108 (B) (2) of the Tax Code, as

services performed in the Philippines by VAT-registered persons shall be subject to zero percent (0%) rate: "(B Transactions subject to Zero Percent (0% Rate. - The following

( X X X;

(2) regulations of the BSP: currency and accounted for in accordance with the rules and rendered to a person engaged in business conducted outside the Philippines or to a non-resident person not engaged in business the consideration for which is paid for in acceptable foreign Services other than those mentioned in the preceding paragraph who is outside the Philippines when the services are performed.

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as implemented by Section 4.108-5 (b) (2) of Revenue Regulations No. 16-2005, as amended by holds that the services rendered by ENDEC to BVSPC which are paid for in acceptable foreign currency will qualify for VAT zero-rating pursuant to Section 108(B2of the Tax Code of 1997, Applying the afore-cited provisions of the law to the case under consideration, this Office C

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the rules and regulations of the BSP.(BIR Ruling No.134-18 dated February8,2018,BIR Ruling No.413-12 dated June 15, 2012 RR No.4-2007. provided, that the same is remitted inwardly and accounted for in accordance with

provided in Section 1-12 (A) of the Tax Code, as implemented by Section 19 of RR 4-2007. (VAT VAT due or paid attributable to its zero-rated sale of services to BVSPC, subject to the conditions Ruling No. 018-05 dated September 13, 2005) zero-rating, ENDEC is likewise entitled to apply for the refund of any excess or unutilized input Furthermore, considering that the services rendered by ENDEC to BVSPC qualify for VAT

upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered as null and void. This ruling is being issued on the basis of the foregoing facts as represented. However, if

Very truly yours.

Commissioner of Internal Revenue ROME 001575 LUMAGUI, JR.