Cooperative Subject to 20% Final Tax on Interest Income from Philippine Currency Bank Deposits Paid or Accrued Beginning March 10, 1987

July 14, 1987 BIR RULING NO. 204-87 24 000-00 204-87 Gentlemen : This refers to your letter dated November 4, 1986 requesting exemption from the 17 1/2% (now 20% effective August 1, 1986) withholding tax on your interest income from bank deposit. It is represented that the Cooperative Insurance System of the Philippines, Inc., is duly registered with the Department of Local Government and Community Development under P.D. No. 175 as a full fledged cooperative in good standing with Certificate of Registration No. 004 dated April 8, 1974, and a certificate of Good Standing No. 86-046 dated August 8, 1986. In reply thereto, please be informed that the tax exemption of cooperatives which has been restored by Presidential Decree No. 2008 on January 8, 1986 and effective until December 31, 1991 has been withdrawn by Executive Order No. 93. Such being the case, and since Executive Order No. 93 took effect on March 10, 1987 (BIR Ruling No. 182-87) you are subject to the 20% final tax on interest and/or yield on deposit substitute instruments and interest income from Philippine currency bank deposits paid or accrued beginning March 10, 1987. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner