Exemption from 15% Withholding Tax — Interest Income on Bank Deposits of PAGCOR

April 2, 1981 BIR RULING NO. 067-81 053-(e) 000-00 067-81 Philippine Amusements & Gaming Corporation (PAGCOR) Metro Manila Attention: Atty . Fernando B . Gose Acting Executive Director Gentlemen : This refers to your letter dated January 14, 1981 requesting exemption from the withholding tax provision of Section 53(e) of the Tax Code, as amended by P.D. Nos. 1156 and 1739. In reply, please be informed that since the Philippine Amusements and Gaming Corporation is exempt from the payment of income tax pursuant to Section 4(2)(a) of P.D. No. 1067-B, as amended by P.D. No. 1399, its interest income on bank deposits shall be exempt from the 15% withholding tax in the case of savings deposits and 20% in the case of time deposits and yield from deposit substitutes prescribed by Section 24(cc) in relation to Section 53(c) of the Tax Code, as amended. cdti The PAGCOR is deemed not covered by P.D. No. 1177 which requires government-owned or controlled corporation to pay income taxes effective July 30, 1977, since Presidential Decree No. 1399 which was enacted on June 2, 1978 is a later law. This serves as authority of the depository banks to forego withholding of the tax on the interest earnings of the deposits maintained by PAGCOR with them. Very truly yours, RUBEN B. ANCHETA Acting Commissioner