Exemption of United Nations Joint Staff Pension Fund from Withholding and Other Taxes on Dividends

February 1, 1984 BIR RULING NO. 026-84 29-c-000-00-026-84 Gentlemen : This refers to your letter dated July 28, 1983 requesting confirmation from this Office that the dividends payable to your client Williams and Glyn's Bank PLC Subaccount Fiduciary United Nations are exempt from withholding and other taxes to Article 105 of the Charter of the United Nations. It is represented that the Fiduciary Trust Company of New York, as agent for United Nations Joint Staff Pension Fund (UNJSPF), has an account with the HongKong and Shanghai Banking Corporation in the name of Williams and Glyn's; that under the Convention on the Privileges and Immunities, the UNJSPF is exempt from taxes withheld on dividends and interest paid on securities held in that Fund. In reply, please be informed that Section 29(c)(6) of the NIRC exempts from taxation income of any kind to the extent required by any treaty obligation binding upon the Government of the Philippines. Considering that the Philippines is a signatory to the Convention of the Privileges and Immunities of the United Nations (on October 28, 1947) and that Convention provides for the exemption of the United Nations, its assets, income and other property from all direct taxes, including the United Nations Joint Staff Pension Fund (UNJSPF), the claim for exemption of UNJSPF from the withholding and other taxes on dividends is hereby granted. [Sec. 7(a), Article II (Convention on the Privileges and Immunities of the United Nations)] atdc Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner