BIR Ruling No. 026-82

February 4, 1982 BIR RULING NO. 026-82 24cc 000-00 026-82 Catholic Relief Services SAIDI Building Cor. Arzobispo & Real Sts. Intramuros, Metro Manila Attention: Mr . Francis X . Carlin Program Director Gentlemen : This refers to your letter dated July 23, 1981 requesting exemption from the withholding tax on the interest income of your investments or money market placements. cdtech In reply, please be informed that under Section 1 of Republic Act No. 4481, which reads: "Sec. 1. The provisions of existing laws or ordinances to the contrary notwithstanding, Catholic Relief Services, NCWC and the Tools for Freedom Foundation shall be exempt from the payment of gift, franchise, specific, percentage, real property and all other taxes, duties and fees provided under existing laws or ordinances." you are exempt from the payment of tax on income. Accordingly, the interest earnings of your investments, are exempt from the 15% withholding tax in the case of savings deposit and 20% in the case of time deposit and yield from deposit substitutes imposed by Section 24(cc) of the Tax Code, as amended by Presidential Decree No. 1739. This serves as authority of the depository banks to forego withholding of the final tax on the interest income of the deposits and money market placements maintained by you with them. cdt Very truly yours, RUBEN B. ANCHETA Acting Commissioner