BIR Ruling No. 287-82

November 17, 1982 BIR RULING NO. 287-82 53-d 000-00 287-82 Messrs. Del Rosario, Gacad Madeja, Diaz and Associates First Holdings Centre 349 Buendia Ave. Extension Makati, Metro Manila Attention: Mr . Irineo U . Gacad, Jr . Gentlemen : This refers to your letter dated September 24, 1982 requesting opinion as to whether your client, a financial intermediary which is an investment house authorized to manage fund or engage in trust functions but not licensed by the Central Bank (CB) to engage in quasi-banking functions should withhold the 20% withholding tax on yield/income of trust funds. In reply thereto, I have the honor to inform you that pursuant to Sections 21 (d) and 53(d) (1) of the Tax Code as amended by Batas Pambansa Blg. 135, every bank or non-bank financial intermediary shall deduct and withhold a final income tax of 20% on yield or any other monetary benefit from trust fund and similar arrangements. Trust fund and similar arrangements means an arrangement wherein a fund is maintained by a trust company, bank, or investment house authorized to perform trust functions exclusively for the collective investment and re-investment of certain monies received in its capacity as trustee, or under similar arrangements. (Section 2(D)(2)(ii), Revenue Regulations No. 1-82 dated March 18, 1982). In view thereof, your client which is an investment house authorized to perform trust functions even if not licensed by the CB to engage in quasi banking functions, should withhold the 20% withholding tax on yield/income of funds under its management or trusteeship. Very truly yours, RUBEN B. ANCHETA Acting Commissioner