Request for Refund by Mun. of Kawit (cavite) Denied

September 28, 1993 BIR RULING NO. 383-93 REQUEST FOR REFUND BY MUN. OF KAWIT (CAVITE) DENIED 24 (e) (1) 1-91 83-93 Office of the Mayor Municipality of Kawit Province of Cavite This refers to your letter dated May 20, 1993 in effect requesting exemption of the Municipality of Kawit, Cavite, from the 20% withholding tax on interest income derived from bank deposits and requesting for refund of the withholding taxes already remitted by PNB to the Bureau. In reply, please be informed that Presidential Decree No. 1931 dated June 11, 1984 has withdrawn the tax and duty exemption privileges, including the preferential tax treatment of all units of government, i.e., the National Government, its agencies and political subdivisions, as well as the government-owned or controlled corporations. Corollary to this, Executive Order No. 93 effective March 10, 1987 withdrew all tax and duty incentives granted to government and private entities subject to certain exceptions. Accordingly, the interest income of the Municipal Government of Kawit, Cavite from Philippine currency deposits and yield from deposit substitutes, trust fund and similar arrangements is subject to the 20% final withholding tax pursuant to Section 24(e) in relation to Section 50(a) of the Tax Code, as amended. (RMC No. 1-85 dated January 10, 1985). In view thereof your request for refund is hereby denied for lack of legal basis. cd LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue