BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Jul 27, 1977
Full text
July 27, 1977 The Deputy Chief of Staff DCS For Comptrollership, AFP Camp General Emilio Aguinaldo Quezon City Attention: Brig . General Raymundo Y . Teruel S i r : This refers to your letter of even date requesting that the interest earnings from time and savings account deposits of the Armed Forces of the Philippines (AFP) with the Philippine Veterans Bank be exempted from withholding tax prescribed in Presidential Decree No 1156. In reply, I have the honor to inform you that as the said deposits with the aforementioned bank are funds of the Armed Forces of the Philippines, an agency of the Philippine Government exercising governmental functions, the interest earnings from said deposits are exempt from income tax. Accordingly, said interest earnings are not subject to the requirements of Section 53(c) of the Tax Code, as amended by PD No. 1156. This serves as authority of the Philippine Veterans Bank to forego withholding of 15% of the interest earnings of the deposits of the Armed Forces of the Philippines with said Bank. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8
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