Applicable Withholding Tax Rate on Interest Income Derived from Government Securities
BIR Ruling No. 412-87 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Dec 23, 1987
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December 23, 1987 BIR RULING NO. 412-87 24 (e) 212-86 412-87 Gentlemen : This refers to your letter dated September 24, 1987 requesting information as to the applicable withholding tax rates imposable on interest income derived by you from Government Securities or similar instruments such as Treasury bills and bonds, NFA bonds and CBCIs, if the instruments were issued prior to October 15, 1984 and if issued on or after October 15, 1984. In reply, I have the honor to inform you that the applicable withholding tax rate on interest income derived by you from Government Securities or similar instruments such as Treasury bills and bonds, NFA bonds, and CBCIs are as follows: a) Interest/yield earned or accrued prior to October 15, 1984 20% withholding tax, (RMC No. 39-85) b) Interest/yield earned or accrued from October 15, 1984 up to December 31, 1985 15% withholding tax; c) Interest/yield earned on accrued from January 1, 1986 to July 31, 1986 17.5% final withholding tax, and d) Interest/yield earned or accrued from August 1, 1986 20% withholding tax. (Revenue Memorandum Circular No. 28-86) aisadc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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