PAL Now Subject to 15% Final Withholding Tax on Its Interest on Its Savings and Time Deposits
BIR Ruling No. 185-85 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Oct 17, 1985
Full text
October 17, 1985 BIR RULING NO. 185-85 24 (cc) 000-00 185-85 Gentlemen : This refers to your letter dated August 14, 1985 requesting on behalf of your client the Philippine Airlines, a ruling as to whether or not interests from its bank deposits are subject to the final withholding tax of 15%. In reply, I have the honor to inform you that in view of the amendment of Sections 24(cc) and 53(d)(1) of the Tax Code by P.D. No. 1959 (effective October 15, 1984) which abolished all kinds of tax exemptions and preferential tax treatment on interests of bank deposits, deposit substitutes, trust fund and similar arrangements, PAL shall now be subject to the 15% final withholding tax on its interest and/or yield on deposit substitute instruments, and interest on its savings and time deposits paid or accrued beginning October 15, 1984. cdt Very truly yours, (SGD.) TOMAS C. TOLEDO Acting Commissioner
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