Application for Relief from United Kingdom (UK) Income Tax on Interest Income Earned in UK

February 24, 1995 BIR RULING NO. 043-95 25 (b) (6) 000-00 043-95 Mr. Renato Manlugon AYAO-IVAO Lemery, Batangas S i r : This refers to your application for relief from United Kingdom (UK) income tax on interest income earned in UK. It appears that for your service aboard a Librarian vessel "Tredo", you have accumulated foreign currency savings which, as of November 5, 1993, earned an interest income from British bank deposits in the amounts of 2,899.46 British pound; that this amount less deduction of 724.62 British pounds (at 25% interest rate), or a net interest income of 2,173.81 British pounds was remitted to Mrs. Edna Manlugon through the PNB Lemery Branch, Batangas, by the International Transport Workers Federation. LLphil In reply, please be informed that pursuant to Article 10 par. 2 of the R.P.-U.K. Tax Treaty stating "Article 10 "INTEREST "xxx xxx xxx 2) However, such interest may also be taxed in the Contracting State in which arises, and according to the law of the State, but the tax so charged shall not exceed 15 per cent of the gross amount of the interest. xxx xxx xxx your interest earnings in the United Kingdom shall be subject only to 15% tax on the gross amount thereof. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue