Social Weather Stations, Inc.

October 9, 2007 BIR RULING [DA-530-07] 60 (B) 401-04 Social Weather Stations, Inc. 52 Malingap Street, Sikatuna Village Quezon City Attention: Ms. Maria Teresa M. Inaldo Cashier/Finance Assistance Gentlemen : This refers to your letter dated August 03, 2007 requesting for a ruling that the interest on bank deposit and yield or any other monetary benefits from deposit substitute and from trust funds and similar arrangement of Social Weather Stations, Inc. Employee's Retirement Plan, is exempt from the 20% final tax pursuant to Section 60 (B) of the Tax Code of 1997, as amended. It appears that on July 28, 1995, this Office has approved the Social Weather Stations, Inc. Employee's Retirement Plan as a reasonable retirement benefit plan within the contemplation of then R.A. No. 4917. [now Sec. 32 (B) (6) (a) of the Tax Code of 1997, as amended] cSEaDA In reply thereto, please be informed that under Section 60 (B) of the Tax Code of 1997, as amended, the income of an employee's trust is exempt from income tax. Such being the case, this Office holds that the Social Weather Stations, Inc. Employee's Retirement Plan is exempt from 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 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. HCacTI Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service