BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Sep 22, 1977
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September 22, 1977 Traders Royal Bank Trust Department Aduana St., Intramuros Manila Attention: Mr . Hector T . Rivera Manager Gentlemen : In reply to your letter dated August 12, 1977, please be informed that the Traders Royal Bank Retirement Plan has been found by this Office to be a reasonable retirement plan within the contemplation of Republic Act No. 4917, and as such, one of its privileges is that the income of the retirement trust fund from its investment is exempt from income tax. Accordingly, the interest income which accrues to the savings and time deposits of the said retirement trust fund is exempt from the withholding tax prescribed by Presidential Decree No. 1156. This serves as authority of the depository bank to forego withholding of the 15% tax on the interest earnings of the above said retirement trust fund deposited with it. Very truly yours, BERNARDO D. CARPIO Assistant Commissioner of Internal Revenue TAN-C6110-A1014-A-7
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