Withholding Tax — Interest Income Earned

July 31, 1981 BIR RULING NO. 142-81 24-cc 002-80 142-81 Mr. Emiliano F. Dacayanan Office of the District Supervisor Camiling East District Camiling, Tarlac Dear Mr. Dacayanan : In reply to your letter dated July 2, 1980 please be informed that since under Section 23 of Presidential Decree No. 1177 all units of government are subject to income tax, the Sinilian 1st Elementary School is liable to pay tax on whatever income it derives. Accordingly, the interest income earned on the amount of P15,000 donated by Mr. Eladio A. Mangrobang to the Sinilian 1st Elementary School Library, now named Eladio A. Mangrobang Library, which amount is deposited and maintained in the name of the said library at the Philippine National Bank, Camiling, Tarlac Branch, is subject to the rates of withholding tax prescribed by Section 24(cc) in relation to Section 53(c) of the Tax Code, as amended by Presidential Decree No. 1739. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner