BIR Ruling No. 224-12

March 29, 2012 BIR RULING NO. 224-12 NIRC Section 60 (B); ERP-377-2004 July 7, 2004 TRANSCO Provident Fund Power Center, Quezon Avenue corner BIR Road Diliman, Quezon City Attention: Jose Mari M. Ilagan Interim Fund Administrator Gentlemen : This refers to your follow up letter dated January 9, 2012 requesting for revalidation of the exemption from the 20% and 7.5% final taxes on interest income from local bank deposits and foreign currency deposits of TRANSCO (National Transmission Corporation) Provident Fund. Documents submitted show that BIR Ruling 377-2004 dated July 7, 2004 was issued in favor of TRANSCO Provident Fund, wherein it was declared that being a reasonable provident fund, it is exempt from the 20% and 7.5% final taxes on interest income from local bank deposits and foreign currency deposits. In reply thereto, please be informed that upon review of the provident fund, we find that the same remains to be a reasonable provident fund as contemplated under Section 32 B (6) (a) of the National Internal Revenue Code of 1997, as amended. Hence, the exemption of the above-mentioned trust from payment of the 20% final tax and 7.5% tax on interest income under the expanded foreign currency deposit system imposed under Section 27 (D) (1) of the National Internal Revenue Code of 1997, as amended, remains VALID and SUBSISTING. DIcTEC 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