Request for Exemption from Withholding Tax of the Interests Earnings from Time Deposit Account Denied

January 9, 1992 BIR RULING NO. 012-92 21 (c) (1) 240-89 012-92 Mr. Francisco S. Borja Caritan Sur Tuguegarao, Cagayan S i r : This refers to your letter dated June 21, 1991 which was referred to this Office by Mr. Carlito C. Gaddi, Officer-in-Charge, Political Affairs Office, Office of the President, requesting exemption from 20% withholding tax of the interests earnings from your time deposit account. In reply, please be informed that pursuant to Section 21(c)(1) of the Tax Code, as amended, a final income tax of 20% shall be withheld from the interest income derived by a citizen or resident alien from any Philippine currency bank deposit and yield or any other monetary benefit from deposit substitutes and from trust fund and similar arrangements. Such being the case, your request for exemption from the 20% withholding tax of your interest income from bank deposit sourced from your lump sum retirement benefits has to be, as it is hereby denied for lack of legal basis. Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue