BIR Ruling No. 141-96

December 18, 1996 BIR RULING NO. 141-96 R.A. 2640 RR6-85 000-00 141-96 VFP Management and Development Corporation VFP Industrial Area, Veterans Center Taguig, Metro Manila Attention: Col . Vicente O . Novales Chairman and President Gentlemen : This refers to your letters dated January 4, 1996 and November 13, 1996 requesting that the Veterans Federation of the Philippines (VFP) be exempted from the withholding tax on interest income derived from its bank deposits and investments and on the rental income derived by that corporation from lease contracts of its real properties located at the Veterans Center in Taguig, Metro Manila and other areas in the Philippines. LLcd In reply, please be informed that since the Veterans Federation of the Philippines is exempt from any and all taxes pursuant to Section 11 of Republic Act No. 2640 which was withdrawn by Presidential Decree No. 1913 and Executive Order No. 93 but subsequently restored by Republic Act No. 7291 approved on March 24, 1992, as implemented by Finance Department Order No. 88-94, its interest income on Philippine currency bank deposits and yield or any other monetary benefit from deposit substitutes and from trust fund and similar arrangement shall be exempt from the 20% final withholding tax prescribed under Section 24 (e) (1) of the Tax Code, as amended. Moreover, income payments to the Veterans Federation of the Philippines for the lease of its real properties located at the Veterans Center in Taguig, Metro Manila and in other areas in the Philippines are not subject to the creditable expanded withholding tax pursuant to Section 4 (b) of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 12-94 implementing Section 50 (b) of the Tax Code, as amended. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue