BIR Ruling No. 229-11

July 13, 2011 BIR RULING NO. 229-11 Section 27 (D) (1) NIRC; BIR RULING [DA-(FIT-005) 155-09] Rizal Commercial Banking Corporation Trust and Investments Division Yuchengco Tower RCBC Plaza, Ayala Avenue, Makati City Attention: Lyn L. de Guzman AVP/Head Trust Operations Criselda Yu Pastoral FVP/Head, Trust Retail Marketing Gentlemen : This refers to your letter dated March 31, 2011, and supplemental letter dated April 1, 2011, requesting on behalf of Ateneo de Manila University (Quezon City), Inc. for reconfirmation of its tax exemption from the 20% percent and 7.5% final taxes on its interest income derived from local bank deposits and foreign currency deposits. Documents submitted show that Ateneo de Manila University (Quezon City), Inc. , with Tax Identification Number (TIN) 000-707-229-000, is a non-stock, non-profit educational institution registered with the Securities and Exchange Commission (SEC) bearing Reg. No. 23149; 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. 324-88 , dated July 13, 1988. In reply, please be informed that the exemption of Ateneo de Manila University (Quezon City), Inc. from payment of the 20% final tax and 7.5% tax on 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 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; CAETcH (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. DA (FIT-005) 155-2009 dated March 13, 2009. 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. CHIScD Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue