Exemption from Tax — Debt Instruments

April 1, 1981 BIR RULING NO. 061-81 29-00 000-00 061-81 National Home Mortgage Finance Corporation 10th Floor, Citibank Center Paseo de Roxas, Makati Metro Manila Attention: Mr . Florencio B . Orendain President Gentlemen : In reply to your letter dated August 18, 1980, please be informed that pursuant to Section 7 of P.D. No. 1267, the debt instruments issued by the National Home Mortgage Finance Corporation in the exercise of its powers under Section 5(b) of the same aforecited decree to borrow funds from domestic or foreign private financial institutions as may from time to time be required for its operations, and to issue bonds, promissory notes, debentures and other debt instruments in local or foreign currency, are fully exempt, both as to principal and interest, from any and all taxes imposed by the Government or any of its subdivision. cdtech Accordingly, since the tax exemption attaches to the debt instruments, both as to principal amount of the credit and the interest accruals thereto, you can assure your creditors that the interest earnings of the said debt instruments are exempt from tax. Very truly yours, RUBEN B. ANCHETA Acting Commissioner