BIR Ruling [DA-259-06]

April 12, 2006 BIR RULING [DA-259-06] Feliciano F. Miravite, Inc . 12th Floor, L. V. Locsin Building 6752 Ayala corner Makati Avenues Makati City Attention: Susan Baraquio Senior Manager Gentlemen : This refers to your letter dated October 25, 2005 requesting a ruling to the effect that the interest and/or yield from the deposit substitutes and investment of the trust fund of the Ilocos Norte Electric Cooperative, Inc. Retirement Plan is exempt from the 20% final tax. It appears that on March 4, 1991, this Office has duly approved the Ilocos Norte Electric Cooperative, Inc. Retirement Plan as a reasonable retirement benefit plan under then R.A. No. 4917. In reply thereto, please be informed that under Section 60(B) of the Tax Code of 1997, the income of an employees' trust is exempt from income tax. Such being the case, this Office holds that the interest from currency bank deposit and yield or any monetary benefit from deposit substitutes and from trust funds and similar arrangements derived by the Ilocos Norte Electric Cooperative, Inc. Retirement Plan which is an employee's trust is exempt from the 20% final tax under Section 24(B)(1) of the Tax Code of 1997. ( CIR vs. GCL Retirement Plan, G.R. No. 95022 dated March 23, 1992 ) 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. ASEIDH Very truly yours, (SGD.) PABLO M. BASTES, JR. OIC, Head Revenue Executive Assistant Legal Service