BIR Ruling No. 216-82

July 19, 1982 BIR RULING NO. 216-82 24-cc 000-00 216-82 New Rural Bank of Bacoor (Cavite), Inc. Zapote, Bacoor, Cavite Attention: Mr . Fidel V . Giron President and Manager Gentlemen : This refers to your letter dated June 25, 1982 requesting exemption from the withholding tax on interests on bank deposits maintained by that bank with its depository bank, the Philippine National Bank. It appears that the New Rural Bank of Bacoor, Inc. is a duly established corporation under the Rural Banks Act (R.A. No. 720), as amended with net assets exclusive of government counterpart capital amounting to P1,500,000.00 as of June 7, 1982, as certified by the Central Bank of the Philippines. In reply thereto, please be informed that pursuant to Sec. 14 of Republic Act No. 720, otherwise known as the Rural Banks Act, when the net assets of a rural bank exceeds one million pesos, the taxes, charges and fees shall be levied in proportion that such excess bears to the said net assets. Such being the case, that bank is partially taxable to the extent of 33.33%. Very truly yours, RUBEN B. ANCHETA Acting Commissioner