BIR Ruling No. 170-82

May 11, 1982 BIR RULING NO. 170-82 24-cc 26-82 170-82 Lungsod ng Kabataan Quezon Avenue Ext. Quezon City Attention: Ms . Fe Del Mundo, M . D . Director Gentlemen : This refers to your letter dated October 30, 1981 requesting exemption from the withholding tax on interest income of your savings account with the Philippine National Bank. In reply, I have the honor to inform you that since under Section 5 of Presidential Decree No. 1631, the Lungsod ng Kabataan shall be exempt from payment of all taxes, charges and fees imposed by the Government or any political subdivision or instrumentality thereof, you are therefore exempt from payment of income tax. Accordingly, the interest earnings of your savings deposit are exempt from the 15% withholding tax and 20% in case of time deposit and yield from deposit substitutes imposed by Section 24 (cc) of the Tax Code, as amended by Presidential Decree No. 1739. cdta This serves as authority of the depository banks to forego withholding of the final tax on the interest income of the deposits and money market placements maintained by you with them. Very truly yours, RUBEN B. ANCHETA Acting Commissioner