BIR Ruling No. 098-11

April 6, 2011 BIR RULING NO. 098-11 Sec. 60 (B); BIR Ruling No. ERP 228-2006; BIR Ruling No. ERP-233-2009 First Philippine Holdings Corporation 4th Floor, Benpres Building Exchange Road cor. Meralco Avenue Pasig City Attention: Rodolfo R. Waga, Jr. Vice-President Gentlemen : This refers to your letter dated January 13, 2010 requesting for confirmation that the interest on bank deposit and yield or any other monetary benefits from deposit substitute and from trust funds and similar arrangement of First Philippine Holdings Corporation Retirement Plan, is exempt from the 20% final tax pursuant to Section 60 (B) of the Tax Code of 1997, as amended. It appears that on June 23, 2006, this Office has approved the First Philippine Holdings Corporation Retirement Plan as a reasonable retirement benefit plan within the contemplation of then R.A. No. 4917. [now Sec. 32 (B) (6) (a) of the Tax Code of 1997, as amended] In reply thereto, please be informed that under Section 60 (B) of the Tax Code of 1997, as amended, the income of an employee's trust is exempt from income tax. (BIR Ruling No. ERP-233-2009 dated October 21, 2009) Such being the case, this Office holds that the First Philippine Holdings Corporation Retirement Plan is exempt from the 20% final tax on interest and/or yield on deposit substitute instruments and on interest on its Philippine currency bank deposits. (CIR vs. GCL Retirement Plan, G.R. No. 95022 dated March 23, 1992) (BIR Ruling ERP 228-2006 dated June 23, 2006) EcIaTA This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue