BIR Ruling No. 536-2017

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DEDARTMENI O IINANCE BUREAU OF INTERNAL REVENUE Quezon City 1n Scction 5. RA No. 8367: BIR Ruling No. 046-15: BIR Ruling No. 233-14 RMC No. 9-2016 B{R Ruling No. 460-14:

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SAVINGS AND LOAN ASSOCIATION, INC SANITARY CARE PRODUCTS ASIA EMPLOYEES Bagumbayan. Taguig City 1 SA Sta. Maria Drive, Sta. Maria Industrial Estate.

Attention: REY A. MOLINA President

Gentiemen:

pursuant to Republic Act (RA) No. 8367. entitled: "An Act Providing for the Reguiations of 'the Organization and Operation of Non-Stock Savings and Loan Association". This refers to your letter dated Iecember 07. 2015 requesting for tax exemption

dated October 06. 2015, is a corporation duly organized under the laws ot the Certificatc of Authority was issued by the Bangko Sentral ng Pilipinas (BSP) on Aprit! SAVINGS AND LOAN ASSOCIATION, INC. authorizing the latter to operate as a Non-Stock Savings and i.oan Association (NSSLA) under Republic Act (RA) No. 8367. SAVINGS AND LOAN ASSOCIATION, INC. with Taxpaver's identification No. Philippines: that it is registered with the Securities and Exchange Commission (SFC) 25. 20:3 in favor of SANITARY CARE"PRODUCTS ASIA EMPLOYEES TIN undcr Company Registration No 1t is repreSented that SANITARY CARE PRODUCTS ASIA EMPLOYEES and Certificate of Registration No. dated February 13. 2013; and that a

In reply. please be informed as foflows: Income Tax

Section 5 of RA No. 8367 provides that:

"for profit."regardless of the disposition thereof. is subject to the from puyment of tax in respect to income it receives, including interest on its deposits with anv hamk: Provided, however. That income derived from amy of its properties, real or personal, or any activity conducted corresponding internal 'reveme "taxes imposed under "the Nationul Internal Revenue Code. "SE(. TION 5. Tax Exemption. - An Association shall be exempt

shall he exempt from income tax: well as the shares of is members from the net income of the Assoviations Interest earnings on deposits of memhers with Associations. as

536-2017 SANITARY CARE PRODUCTS ASIA EMPLOYEES SAVINGS AND LOAN ASSOCIATION,INC 11-20-2017

Basedon theforegoing SANITARYCAREPRODUCTS ASIA

income tax with respect to income it receives. Also, interest income derived by it from its deposit and deposit substitutes are exempt from twenty percent (20% final withholding tax.(BIR Ruling No.046-15 dated February 11,2015 and BIR Ruling EMPLOYEES SAVINGS AND LOAN ASSOCIATION,INC.shall be exempt from No.460-14 dated November 13,2014

taxes imposed under National Internal Revenue Code of 1997.as amended.It is subject to the applicable income tax depending on the classification of its properties either EMPLOYEES SAVINGS AND LOAN ASSOCIATION,INC.from any of its properties, real or personal. or any activity conducted for profit regardless of the disposition thereof, is subject to the applicable income tax and other internal revenue capital or ordinary asset. However.any income derived by SANITARY CARE PRODUCTS ASIA

Gross Receipts Tax

Section 4 of RR No.9-2004 states that Section 122 of the National Internal Revenue Code of 1997.as amended.provides for the imposition of Gross Receipts Tax (GRT) on Non-bank Financial Intermediaries. Section 4 of Revenue Regulations (RR No.9-2004,as amended,implementing

financial intermediaries (non-bank financial intermediary not performing quasi-banking functions) doing business in the Philippines shall be subject to GRT at rates and on items of income provided bank Financial Intermediaries.- Gross receipts of other non-bank hereunder: SECTION 4.Imposition of Gross Receipts Tax on Other Non-

(a) From interest, commissions, discounts and all other items treated as gross income under the Code 5%

b On interests. commissions and discounts from instruments from which such receipts are derived lending activities as well as income from financial leasing.on the basis of remaining maturities of the

Maturity period is five(5years or less-5%

Maturity period is more than five(5) years --1%

xxx-xxxxxx"

AND LOAN ASSOCIATION,INC.is generally subject to GRT on income derived from its operations, unless otherwise exempted under special rules. ThuS,SANITARY CARE PRODUCTS ASIA EMPLOYEES SAVINGS

Documentary Stamp Tax

association is only exempt from income tax.Thus.SANITARY CARF PRODUCTS ASIA EMPLOYEES SAVINGS AND LOAN ASSOCIATION,INC.as a non-bank financial intermediary, is subject to Documentary Stamp Tax DST under the Code of 1997.as amended, particularly on loan agreements, mortgages, pledges. foreclosures and sales, among others. provisions of RR No.13-2004 implementing Title VIl of the National Internal Revenue As provided under Section 5 of RA 8367, a non-stock savings and loan

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SANITARY CARE PRODUCTS ASIA EMPLOYEES SAVINGS AND LOAN ASSOCIATION,INC #536-2017 11-20-2017

is one of the parties to a taxable transaction, it shall be responsible for the remittance of the DST due regardless of who will bear the burden of paying the DST. PRODUCTS ASIA EMPLOYEES SAVINGS AND LOAN ASSOCIATION,INC. Morcover,pursuant to RR No.9-2000,whenever SANITARY CARE

However, if upon investigation, it will be disclosed that the facts are different, then this ruling shaft be considered null and void This ruling is being issued on the basis of the foregoing facts as represented.

Very truly yours

Commissioner of Internal Revenye CAESAR R. DULAY 011254

K-1-LMAT

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