DMCI Holidngs Guidelines of Cash Dividend Distribution
Taxpayer Final Withholding Tax Rate Individual citizen Ten percent (10%) Individual resident alien Ten percent (10%) Non-resident alien individual a. Engaged in trade or business - Twenty percent (20%)
b. Not engaged in trade or business - Twenty five (25%)Domestic corporation exempt Resident foreign corporation exempt Non-resident foreign corporation (NRFC) a. Thirty percent (30%)
b. If current BIR rulings or jurisprudence indicate that the tax sparing requirement under Section 28 (B) (5)(b), NIRC, is complied with, i.e., that the country of residence of the NRFC allows a deemed paid tax credit of fifteen percent (15%) on taxes due from the NRFC - Fifteen percent (15%)
2. FOR NON-RESIDENT FOREIGN STOCKHOLDERS (CORPORATE OR INDIVIDUAL) CLAIMING ENTITLEMENT TO APREFERENTIAL TAX RATE ON DIVIDEND INCOME UNDER A TAX TREATY. - Any foreign stockholder (the "Claiming Stockholder") claiming entitlement to a preferential tax rate on dividend income under a tax treaty with the Republic of the Philippines shall be required to submit the following documents to the Company not later than June 29, 2012, 5:00 p.m. (Manila Time):
- a filed complete application (together with the documentary requirements) for tax treaty relief prepared in accordance with Revenue Memorandum Order No. 72-20'10, which has been reviewed and confirmed as valid by the Company or its counsel and duly received by the Bureau of Internal Revenue - International Tax Affairs Division (" BIR-ITAD"); and
- a signed and duly notarized / consularized (if issued abroad) indemnity undertaking in the form attached as Annex A hereof; and
- duly notarized / consularized (if issued abroad) hoard resolution authorizing the execution of the indemnity undertaking and designating the authorized signatories therefor.
Upon submission of the documents above, the Claiming Stockholder shall he entitled to avail of the preferential tax rate. If the Claiming Stockholder is unable to submit the documents within the time prescribed, the Company will withhold and remit the taxes at the applicable withholding tax rates.
3. FOR NON-RESIDENT FOREIGN CORPORATIONS CLAIMING THE TAX SPARING RATE OF 15%, - Any foreign stockholder (the "Claiming Stockholder") claiming entitlement to the 15% tax rate on dividend income under Section 28(B)(5)(h) of the NIRC shall be required to submit the following documents to the Company not later than June 29, 2012, 5:00 p.m. (Manila Time):
- Certified copy of a BIR ruling addressed to it confirming the application of the tax sparing rate of 15%; or
- Signed and duly notarized / consularized (if issued abroad) indemnity undertaking in the form attached as Annex A-1 hereof, together with a duly notarized / consularized (if issued abroad) board resolution authorizing the execution of the indemnity undertaking and designating the authorized signatories therefor.
Upon submission of the required document, the Claiming Stockholder shall be entitled to avail of the 45% tax sparing rate.
If the Claiming Stockholder is unable to submit the required document within the time prescribed, the Company will withhold and remit the taxes at the regular 30% withholding tax rate.
4. FOR STOCKHOLDERS CLAIMING TAX EXEMPTION. - Any stockholder (the "Claiming Stockholder") claiming exemption from withholding tax in respect of the Dividends in accordance with any provision of the NIRC or special law shall he required to submit the following documents to the Company not later than June 29, 2012, 5:00 p.m. (Manila Time):
- Certified copy of a BIR ruling addressed to it confirming the exemption claimed; or
- Signed and duly notarized / consularized (if issued abroad) indemnity undertaking in the form attached as Annex A-2 hereof, together with a duly notarized / consularized (if issued abroad) board resolution authorizing the execution of the indenmity undertaking and designating the authorized signatories therefor.
Upon submission of the documents, the Claiming Stockholder shall be entitled to receive the Dividends without deduction for withholding tax.
If the Claiming Stockholder is unable to submit the required documents within the time prescribed, the Company will withhold and remit the taxes at the applicable withholding tax rates.
5. For any questions on the foregoing, you may contact any of the following:
- https://www.affordablecebu.com/Mr. Aidric G. Borlaza3/F Dacon Building2281 Don Chino Roces Avenue, Makati CityTelephone No. 888-3000 loc. 1554Atty. Noel A. Laman or Atty. Ma. Pilar Pilares-GutierrezThe Valero Tower122 Valero Street, Satcedo Village, Makati CityTelephone No. 817-6791 to 95
