BIR Ruling No. 200-13

May 22, 2013 BIR RULING NO. 200-13 Section 4 (3), Article XIV, 1987 Constitution; Department Order No. 149-95; BIR Ruling No. ERP-289-2012 Union Bank of the Philippines UnionBank Plaza Meralco Ave. cor. Onyx & Sapphire Roads Ortigas Center, Pasig City Attention: Cecile Ma. G. Gaston Business Development Manager Jocelyn L. Sampedro Head, Business Development Gentlemen : This refers to your letter dated January 31, 2012 requesting revalidation of the exemption from the 20% and 7.5% final taxes on interest income from local and foreign currency bank deposits and/or yield or any monetary benefits from deposit substitutes, trust funds and similar arrangements of La Salle Greenhills, Inc. , a non-stock, non-profit educational institution. It is represented that La Salle Greenhills, Inc. is a non-stock, non-profit educational institution registered with the Securities and Exchange Commission (SEC), bearing SEC Certificate of Registration No. 17370; and that the tax exemption of the said institution as a non-stock, non-profit educational institution from the 20% and 7.5% final taxes on its interest income from local bank deposits and foreign currency deposits had already been confirmed by this Office in BIR Ruling No. ERP 289-2012 , dated May 3, 2012 issued to Deutsche Bank AG Manila. In reply, please be informed that the exemption of La Salle Greenhills, Inc. from the payment of the 20% final tax and 7.5% tax on its interest income derived from local bank deposits and foreign currency deposits and/or yield or any monetary benefits from deposit substitutes, trust funds and similar arrangements 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: DEHaTC (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. ERP-289-2012 dated May 3, 2012) 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. aIAcCH Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue