BIR Ruling [DA-190-98]

May 15, 1998 BIR RULING [DA-190-98] Confederation of Non-Stock Savings and Loan Associations. Inc. c/o Manila Teachers M.A.B. Building 918 U.N. Avenue Ermita, Manila Attention: Atty . Samuel B . Padilla Gentlemen : This refers to your letter dated April 7, 1998 requesting this Office to defer the processing of applications of Non-Stock Savings and Loan Associations (NSSLAs) for exemptions from the twenty percent (20%) final withholding tax on interest income from bank deposits, without the endorsement of the Confederation of Non-Stock Savings and Loan Association, Inc. (CONSLA). cdti It is represented that CONSLA is an organization of non-stock and savings and loan association nationwide aimed at promoting camaraderie and cooperation among its members, that you have been recognized by the Bangko Sentral ng Pilipinas (BSP) as the duly accredited industry association of non-stock savings and loan association in the country; and that your request is anchored on the recognition of the authority and supervision of the President of the CONSLA over its members. In reply, please be informed that there is nothing in R.A. 8367 which provides that to be exempt from the twenty percent (20%) final withholding tax on interest income from bank deposits, a NSSLA must first be a member of CONSLA and such NSSLA be endorsed by the said Confederation before an exemption from may be granted by this Office. Moreover, the problem for the recognition of the authority and supervision of the President of the CONSLA over its members is outside the jurisdiction of this Bureau. Such being the case, your request for the deferment of the processing of the request for exemption of NSSLAs from the twenty percent (20%) final withholding tax on interest income from bank deposits, unless properly endorsed by CONSLA, is hereby denied. cdll Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)