Request for Exemption from Final Income Tax of the Interest Income of Mr. Robert James Morrison

November 23, 1998 BIR RULING NO. 166-98 24 (B) (1)-000-00-166-98 Bank of the Philippine Islands San Fernando, La Union Branch San Fernando, La Union Attention: Mr . Ernesto C . Inocencio Manager Gentlemen : This refers to your letter dated May 8, 1998 which was referred to this Office by the Regional Director, Revenue Region No. 1, Calasiao, Pangasinan bearing on your request for exemption from the final income tax of the interest income of Mr. Robert James Morrison. In support of your request, you submitted to this Office xerox copy of Passport No. B472853 issued by the Government of United Kingdom of Great Britain and Northern Island showing that Mr. Morrison is a British citizen. In reply, please be informed that the final income tax of 7.5% prescribed under Section 24 (B) (1) of the Tax Code of 1997 is imposed on the interest income received by an individual taxpayer from a depository bank under the expanded foreign currency deposit system, to the exclusion of nonresident individuals. Since Mr. Morrison is a nonresident alien as evidenced by xerox copies of his passports attached to your letter, his interest income from foreign currency deposit account with your bank is exempt from the 7.5% final income tax imposed under said Section 24 (B) (1) of the Tax Code of 1997, as implemented by Revenue Regulations No. 10-98 dated August 25, 1998. This ruling is being issued on the basis of the facts as represented. However, if upon investigation, is shall be disclosed that the facts are different then this ruling shall be considered null and void. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue