BIR Ruling [DA-443-06]

July 20, 2006 BIR RULING [DA-443-06] DA 132-03 Transco Provident Fund Power Center, Quezon Avenue corner BIR Road Diliman, Quezon City Attention: Mr. Noli E. Pomperada Interim Fund Administrator Gentlemen : This refers to your letter dated May 26, 2006 requesting for an updated Certification and/or Tax Exemption Clearance on interest income derived by the Transco Provident Fund from its money placements in the bank deposit, deposit substitutes, trust funds and/or similar or like arrangements/investments. In reply thereto, please be informed that the Transco Provident Fund being an employees' trust remains exempt from income tax under Section 32(B)(6)(f) of the Tax Code of 1997 and that the income of the trust fund from its investment are 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. Transco Provident Fund is likewise not subject to the 20% final tax on interest and/or yield on deposit substitute instruments and interest on its Philippine currency bank deposits. ( CIR vs. GCL Retirement Plan , G.R. No. 95022, March 20, 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 null and void. Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service