Sr. Kuruvila Mini

September 18, 2009 BIR RULING [DA-(FIT-019) 558-09] (24) (B) (1), RR 10-98; 166-98; DA-395-99 Sr. Kuruvila Mini Our Lady's Home Dormitory 833 Earnshaw St. Sampaloc, Manila Madam : This refers to your letter dated July 30, 2009 stating that you are a foreign missionary of the Congregation of Holy Family and was here in Manila since April 2008. Per documents submitted it appears that you are a citizen of the Republic of India as evidenced by your Indian Passport No. G6956244 issued on February 6, 2008 and that you are engaged in missionary activities for street children and families in Asilo de San Vicente de Paul, Manila. You are likewise a holder of an Alien Certificate of Registration (ACR) from the Bureau of Immigration stating therein that you have a Non-Immigrant Visa. Your passport shows that since your arrival here in April 2008 you haven't left the Philippines. You have a dollar time deposit account in Philtrust Bank, Manila which may help in your missionary works but was required to secure a certification from the BIR National Office in order to get an exemption from withholding tax on your interest earnings of dollar time deposit account. In reply please be informed that the final income tax of 7.5% prescribed under Sec. (24) (B) (1) of the Tax Code of 1997, as amended, is imposed on the interest income received by an individual taxpayer from the depository bank under the expanded foreign currency deposit system, to the exclusion of non-resident individuals. Since you are a non-resident individual, the interest income of your foreign currency deposit account is therefore, exempt from the 7.5% final income tax imposed under Section (24) (B) (1) of the Tax Code of 1997, as implemented by Revenue Regulation (RR) No. 10-98 dated August 25, 1998. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered as null and void. aSAHCE Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service