Non-stock Organization Taxable on Income from Deposits

February 18, 1993 BIR RULING NO. 070-93 NON-STOCK ORGANIZATION TAXABLE ON INCOME FROM DEPOSITS 24 (e) (1) 142-92 070-93 Damatac-Haban and Partners Certified Public Accountants 90 Hillside Subdivision, Baguio City Attention: Mr . Leo H . Haban This refers to your letter dated May 20, 1992 requesting in behalf of your client. Fernando-Rosa Bautista Foundation, Inc. exemption from the 20% final withholding tax on its savings deposits. cdta Records show that Fernando-Rosa Bautista Foundation, Inc. is a non-stock, non-profit corporation organized for charitable and social welfare purposes; that as represented income payments derived from membership contributions are deposited in the banks and that you now request in behalf of your said client, exemption from the 20% final withholding tax on its saving deposits. In reply, please be informed that interest income from Philippine currency bank deposits of non-stock, non-profit organization such as Fernando-Rosa Bautista Foundation, Inc. is subject to 20% final withholding tax pursuant to Section 24(e)(1) in relation to Section 50(e) both of the Tax Code, as amended. It is therefore regretted that we cannot grant your request for lack of legal basis. cdt JOSE U. ONG Commissioner of Internal Revenue