BIR Ruling No. 305-11

August 15, 2011 BIR RULING NO. 305-11 Republic Act No. 8367; BIR Ruling No. DA-308-98; BIR Ruling No. 138-97 Meralco Employees Savings & Loan Association, Inc. Operations Building, Meralco Center Ortigas Avenue, Pasig City Attention: Mr. Alfredo D. Ramos General Manager Gentlemen : This refers to your letter dated April 8, 2011 stating that Meralco Employees Savings & Loan Association, Inc. is a non-stock corporation duly registered with the Securities and Exchange Commission (SEC) under SEC Registration No. 962 with TIN 001-053-869; that it is primarily organized "To foster, promote and cultivate the habit of thrift and savings among its members, and to that end, to engage in the operation of a non-stock savings and loan; to receive savings and time deposits and capital contribution from its members and to pay interest on said deposit at such rates as may be allowed by Central Bank rules and regulations; to extend loans to members and/or make investments in securities of the Government or any of its political subdivisions, instrumentalities or corporations." and that in BIR Ruling No. DA-308-98 dated July 6, 1998 , the BIR ruled that interest income derived by the Meralco Employees Savings & Loan Association, Inc. from its deposit and deposit substitutes are exempt from the twenty percent (20%) final withholding tax citing BIR Ruling No. 138-97 dated December 29, 1997 . Based on the foregoing representations, you now request for revalidation of the tax exemption certificate duly issued to Meralco Employees Savings & Loan Association, Inc. In reply thereto, please be informed that the exemption of Meralco Employees Savings & Loan Association, Inc. from payment of tax in respect to income it receives, including interest on its deposits with any bank as provided for under Section 5 of Republic Act (RA) No. 8367 remains valid and subsisting. Consequently, interest income derived by Meralco Employees Savings & Loan Association, Inc. from its deposits and deposit substitutes are exempt from the 20% final tax. TSIDaH Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue