BIR Ruling

June 17, 1969 Mr. Mario A. Batongbacal Rural Bank of Bocaue, Inc. Bocaue, Bulacan S i r : This refers to your letter dated April 16, 1969 requesting information as to the tax status of the Rural Bank of Bocaue, Inc. In reply thereto, I have the honor to inform you that Section 24 of the Tax Code as amended by Republic Act No. 5431 subjects all corporate taxpayers other than those exempted under subsection (c)(1) of Section 24 and Section 27 of the said Code to the corporate income tax regardless of the provisions of existing special and general laws to the contrary. By virtue of this new provision, all corporations, e.g., Rural Banks, which under special laws, are exempt from income tax are now subject to tax. In fact, the liability to tax now of rural banks had been upheld by the Secretary of Justice. In view thereof, the Rural Bank of Bocaue, Inc. is now required to file income tax returns and is subject to the corporate income tax at the increased rates on income received or earned starting July 1, 1968. cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue