BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Sep 27, 1977
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September 27, 1977 Rural Bank of Mataasnakahoy (Batangas), Inc. Mataasnakahoy, Batangas Attention: Mr . Juan L . Silva Manager Gentlemen : Please be informed that since your Rural Bank has been certified by the Central Bank of the Philippines as having net assets not exceeding one million pesos (P1,000,000.00) as of August 20, 1977, that Bank is exempt from income tax, pursuant to Section 14 of the Rural Bank Act (Republic Act No. 720, as amended). Accordingly, the interest income of the Bank deposits of that Bank are exempt from the 15% withholding tax prescribed by Presidential Decree No. 1156, It may be stated in this connection, that you can enjoy the abovesaid exemption only as long as your net assets do not exceed the maximum limit set by law for which the exemption is allowed. This serves as authority of the depository banks to forego withholding of the 15% tax on the interest earnings of the funds deposited with them by that Bank. Very truly yours, For the Commissioner: BERNARDO D. CARPIO Assistant Commissioner of Internal Revenue TAN-C6110-A1014-A-7
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