Interests on Savings Deposit Welfare Purposes, Being Income Derived from Personal Property, are Subject to the 15% Withholding Tax

December 5, 1984 BIR RULING NO. 184-84 24 cc-000-00-184-84 Gentlemen : This refers to your letters dated October 4 and November 6, 1984 stating that on September 10, 1984 your company launched a Disaster Fund Campaign to provide most-needed assistance to the victims of typhoon Mitang and storm Maring; that you have received from many of your readers about P1.6 Million in contributions; and that for proper accounting controls, you opened a savings account to generate additional income in terms of interests. In this connection, you request exemption from the withholding tax on interest earned by said deposit prior to the enactment of Presidential Decree No. 1959 on October 15, 1984. In reply thereto, I have the honor to inform you that your request cannot be granted for lack of legal basis. Interests on savings deposit welfare purposes, being income derived from personal property, are subject to the 15% withholding tax even prior to October 15, 1984 when P.D. No. 1959 took effect. (Section 27, Tax Code, as amended by P.D. No. 1457) cdtech Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner