BIR Ruling [DA-029-04]

January 16, 2004 BIR RULING [DA-029-04] SM Savings and Loan Association, Inc. Shoe Mart, Inc. Head Office Building Metro Manila Attention: Mr. Roque A. Lim President Gentlemen : This refers to your letter dated December 3, 2003 requesting confirmation that the interest income derived by SM Savings and Loan Association, Inc. from its bank deposits and yield or any other monetary benefit from deposit substitutes is exempt from the twenty percent (20%) final withholding tax imposed under Section 27(D)(1) of the Tax Code of 1997, pursuant to Section 5 of the Republic Act No. 8367. In reply thereto; please be informed that this Office in BIR Ruling No. DA-234-98 dated June 10, 1998 ruled that "interest income derived by SM Savings and Loan Association, Inc. from its bank deposit and yield or any other monetary benefit from deposit substitutes are exempt from the twenty percent (20%) final withholding tax imposed under Section 27(D)(1)of the Tax Code of 1997." In view of the foregoing, this Office hereby confirms your opinion that interest income derived by SM Savings and Loan Association, Inc. from its bank deposit and yield or any other monetary benefit from deposit substitutes is exempt from the 20% final tax under Section 27(D)(1) of the Tax Code of 1997. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. HCSEIT Very truly yours, (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service