Amendment of Section 3 of Revenue Regulations No. 17-84

June 30, 1986 REVENUE REGULATIONS NO. 10-86 SUBJECT : Amendment of Section 3 of Revenue Regulations No. 17-84 TO : All Internal Revenue Officers and Others Concerned SECTION 1 . Pursuant to Section 227 in relation to Section 4 both of the National Internal Revenue Code, as amended, these regulations are hereby promulgated to amend Revenue Regulations No. 17-84. 2 . The provisions of Section 3 Revenue Regulations No. 17-84 are hereby amended to read as follows: "Sec. 3. Final withholding tax on interest on savings and time deposit . (a) In general . Interest from Philippine currency, bank deposits and yield or any other monetary benefits from deposit substitutes and from trust fund and similar arrangements received by citizens, resident alien individuals, and resident foreign corporations shall be subject to a final withholding tax at the rate of 20%. "(b) Exemptions from withholding tax . The withholding of tax as required in the preceding paragraph shall not apply to "(i) Yield on debt instruments with maturity of not more than five days, issued specifically on interbank call on loans to cover deficiency in reserves against deposit liabilities as evidenced by interbank loan advice or repayment transfer tickets. "(ii) Income received from their investments in the Philippines by (1) foreign governments, (2) financing institutions owned, controlled or enjoying refinancing from them and (3) international or regional financing institutions established by governments. SECTION 3 . Effectivity . These regulations shall take effect and apply to: (1) Interest and or yield on deposit substitute instruments issued beginning August 1, 1986; and (2) Interest on savings and time deposits earned or accrued beginning August 1, 1986. (SGD.) JAIME V. ONGPIN Minister of Finance Recommending Approval: (SGD.) BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue