BIR Ruling No. 225-12

March 29, 2012 BIR RULING NO. 225-12 Section 27 (D) (1) NIRC; BIR Ruling No. 166-11; BIR Ruling No. 229-11 Banco de Oro Unibank, Inc. Trust and Investments Group BDO Corporate Center 7899 Makati Avenue, Makati City Attention: Ma. Theresa R. Lichauco Asst. Vice-President Gentlemen : This refers to your letter dated January 20, 2012 requesting for revalidation of the exemption from the 20% and 7.5% final taxes on interest income from local and foreign currency bank deposits of the La Sallian Educational Innovators Foundation (De la Salle-College of Saint Benilde), Inc. (the "Foundation" ), a non-stock, non-profit educational institution. DcAaSI It is represented that the Foundation, with Tax Identification Number (TIN) 001-399-066-000, is a non-stock, non-profit educational institution registered with the Securities and Exchange Commission (SEC), bearing SEC Reg. No. A144920; that the Foundation is registered with and duly recognized by the Commission on Higher Education; and that the tax exemption of the said institution as a non-stock, non-profit educational institution had already been confirmed by this Office in BIR Ruling No. 408-88, dated August 23, 1988. In reply, please be informed that the exemption of the Foundation 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 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: (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. 166-2011 dated May 25, 2011; BIR Ruling No. 229-2011 dated July 13, 2011 ) 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. IaECcH Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue