Shindengen Philippines Corporation Retirement Fund, Inc.

June 24, 2008 BIR RULING [DA-380-08] BIR Ruling No. DA-377-04 Shindengen Philippines Corporation Retirement Fund, Inc. 120 Excellence Avenue cor. Quality Drive Carmelray Industrial Park 1, Calamba City Attention: Mr. Gregorio L. Viado Treasurer Gentlemen : This refers to your letter dated October 9, 2007 requesting for exemption from the 20% withholding tax on interest income from bank deposits. As represented, this Office issued BIR Ruling No. ERP-297-2003 dated October 29, 2003 stating that Shindengen Philippines Corporation Retirement Fund, Inc. is a "reasonable retirement benefit plan" within the contemplation of Section 32 (B) (6) (a) of the Tax Code of 1997. In reply, please be informed that this Office hereby holds that Shindengen Philippines Corporation Retirement Fund, Inc. is an employees trust exempt from income tax under Section 60 (B) of the Tax Code of 1997 and therefore, it need not file an income tax return; and that the income of the trust fund from its investments is exempt from income tax, provided, that in its investment activities, no part of the corpus or income of the fund shall be used for or diverted to purposes other than for the exclusive benefit of the member-employees or their beneficiaries. In view of the foregoing, Shindengen Philippines Corporation Retirement Fund, Inc. is not subject to the 20% final tax on interest and/or yield on deposit substitute instruments and on interest on its Philippine Currency bank deposits ( CIR vs. GCL Retirement Plan, G.R. No. 95022, March 23, 1993). 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 as null and void. Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service