BIR Ruling

March 26, 1969 The Traders Commercial Bank P. O. Box 2716 Manila Attention: Mr . Octavio M . Cuaderno Vice-President Gentlemen : In reply to your letter dated February 21, 1969, I have the honor to inform you that under Republic Act No. 720, as amended, otherwise known as the Rural Bank Act, rural banks with net assets not exceeding P1,000,000.00 excluding the counterpart capital subscribed and paid in by the Government are exempt from all taxes except income tax pursuant to Republic Act No. 5431. Accordingly, checks issued by rural banks meeting the net assets requirement are not subject to the P0.04 documentary stamp tax imposed under Section 216 of the Tax Code as well as the science stamp required under Republic Act No. 5448. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue