BIR Ruling No. 185-11

June 16, 2011 BIR RULING NO. 185-11 Section 27 (D) (1) NIRC; BIR RULING [DA-(FIT-005) 155-09] Banco de Oro Unibank, Inc. Trust and Investment Group BDO Corporate Center, 7899 Makati Ave., Makati City Attention: Maria Teresa R. Lichauco Business Development Officer Gentlemen : This refers to your letter dated February 7, 2011 requesting on behalf of De La Salle-Santiago Zobel School, Inc. (formerly, De La Salle South, Inc.) for revalidation of its tax exemption from the 20% percent and 7.5% final taxes on its interest income derived from local bank deposits and foreign currency deposits. acITSD It is represented that De La Salle-Santiago Zobel School, Inc. , with Tax Identification Number (TIN) 002-856-492-000, is a non-stock, non-profit educational institution registered with the Securities and Exchange Commission (SEC) under Reg. No. 69997; that the tax exemption of the said institution as a non-stock, non-profit educational institution had already been confirmed by this Office in BIR Ruling No. 169-88, dated May 3, 1988; and that said tax exemption had already been revalidated by this Office in BIR Ruling No. DA (FIT-004) 083-2010, dated May 28, 2010, issued to Standard Chartered Bank. In reply, please be informed that the exemption of De La Salle-Santiago Zobel School, Inc. from payment of the 20% final tax and 7.5% tax on interest income derived from local bank deposits and foreign currency deposits imposed under Section 27 (D) (1) of the Tax Code of 1997, as amended, and as provided for under Department Order No. 149-95 dated November 24, 1995, amending Finance Department Order No. 137-87, remains valid and subsisting, subject to compliance with the conditions that as a tax-exempt educational institution it shall on an annual basis submit to the Revenue District Office concerned an annual information return and duly audited financial statement together with the following: (a) Certification from its depository banks as to the amount of interest income earned from passive investment not subject to the 20% final withholding tax and 7 1/2% tax on interest income under the expanded foreign currency deposit system imposed by Section 27 (D) (1) of the Tax Code of 1997; (b) Certification of actual utilization of the said income; and (c) Board Resolution by the school administration on proposed projects ( i.e. , construction and/or improvement of school buildings and facilities, acquisition of equipment, books and the like) to be funded out of the money deposited in banks or placed in money markets, on or before the 15th day of the fourth month following the end of its taxable year (Sec. 4, Finance Department Order No. 137-87). BIR Ruling No. DA (FIT-005) 155-2009 dated March 13, 2009. ICAcHE This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue