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VPI BIR Ruling DA-022-04
VPI BIR Ruling DA-022-04
Gentlemen :
This refers to your letter dated November 13, 2003 requesting on behalf of
your client, Vishay Philippines, Inc. (VPI), for confirmation of your opinion that VPI
is a publicly held corporation as defined under Revenue Regulations No. 2-2001, and
hence, exempt from the Improperly Accumulated Earnings Tax (IAET) imposed
under Section 29 of the Tax Code of 1997.
(3) 55.7% by Vishay Israel Limited which is wholly owned by VII; and
that Vishay Intertechnology, Inc. (VII), a US corporation whose shares are listed and
traded in the New York Stock Exchange (NYSE), is the ultimate parent of VPI; that
based on the information filed with the United States Securities and Exchange
Commission (SEC), as of June 30, 2003, Vishay Intertechnology, Inc. (VII) has 1,771
stockholders of record for their common stock and the twenty (20) largest
stockholders of VII own an aggregate of 49.63% of VII's issued and outstanding
common shares; and that in support of your request you submitted to this Office the
following documents:
4. Latest General Information Sheet (GIS) filed by VPI with the Securities
and Exchange Commission (SEC).
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rules shall be applied:
Such being the case, since VPI is a wholly-owned subsidiary of VII, such
shares will be considered as being owned proportionately by the VII shareholders. The
ownership of a domestic corporation for purposes of determining whether it is a
closely held corporation or a publicly held corporation is ultimately traced to the
individual shareholders of the parent company. Thus, where at least 50% of the
outstanding capital stock or at least 50% of the total combined voting power of all
classes of stock entitled to vote in a corporation is owned directly or indirectly by at
least 21 or more individuals, the corporation is considered a publicly-held corporation
as the term is defined under the Regulations.
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(A) . . .
This ruling is being issued in the basis of the foregoing facts as represented.
However, if upon investigation it will be disclosed that the facts are different, then
this ruling shall be considered null and void. DCIAST
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