Collection of the Annual Supervisory Fees (ASF) for the Year 2011

E}ANAKO SEXTNAL NE PILIPINAS OFFICE OF THE DEPUTY GOVERNOR SUPERVISION AND EXAMNANON SECTOR MEMORANDUM NO. M-2011 - q9 To : ALL BANI6 AND NON-BANKS WITH QUASI-BANKING R NCTIONS Subject : Collection of the Annual Supervisory Fees (ASF) for the Year 2011 Pursuant to Sections X901 (2008 - X608.1) and 4901.1Q (2008 - 4652Q) of the Manual of Regulations for Banks IMORB) and the Manual of Regulations for Non- Bank Financial lnstitutions (MORBNFI), respectively, as amended, the following guidelines shall govern the collection by the Bangko Sentral Ng Pilipinas (BSP) and the payment by Banks and NBQBs ofthe 2011 ASF. 1. Notification of Amount Due for 2011 and Mode of Payment The BSP Supervisory Data Center (SDC) shall send a billing notice in June 2011 to the Bank/NBQB for its ASF payment indicating among others, the computation of the ASF due, including the 2% creditable withholding tax (CWT) thereon, if applicable, the period covered by the ASF and the specific date when the ASF will be debited from the BanKs/NBQB's Demand Deposit Account (DDA)with the BSP. The BSP will not accept checks as mode of ASF payment. Banks/NBQBs, upon receipt of the ASF billing noticefrom the BSP, should maintain adequate balance in their DDA to cover the ASF and other daily obligations and, when necessary, make corresponding deposits to fully cover said obligations. In case of deficiency, the provisions on DDA deficiency in Sections X901 (2008 - X60S.1) and 4901.1Q (2008 - 4652Q) of the MORB and MORNBFI, respectively, as amended, shallapply. 2. Exceptions Noted on Billing Notice of 2011 ASF Upon receipt of the BSP Notice of ASF billing a Bank/NBQB is encouraged to check the accuracy of the billing and to submit any of the noted exceptions therein not later than ten (10) days before the specified date of collection/debit to DDA as indicated in the billing notice. The said exceptions, together with supporting docurnents, shall be submitted to:

The Director Supervisory Data Center (SDC) Bangko Sentral Ng Pilipinas 16fr Floor, Mutti-Storey Buitding BSP Complex, A. MabiniStree Malate, Manila 1004 Any exceptions received after the cut-off date or any exceptions not duly substantiated with documents before the cut-off date will be evaluated and considered in the computation of the ASF for the immediate succeedi ng year. 3. Withholding Tax on 2011Supervisory Fees The following shall apply to Bank/NBQBs covered by Sections M and N of BIR Revenue Regulations (R.R.) No. 2-98 as amended by R.R. No. 17-2003: 3.1 Within ten (10) days from date of this Memorandum, the Banly'NBQB shall submit to the BSP {at the address indicated in ltem 2 hereofl a certified true copy of the BIR notice classifoing it as among the institutions covered under Section M of R.R. No. 2-98 as amended by R.R. No. 17-2003. Such BIR notice received by the BSP after said cut-off of ten (10) days will be considered in the ASF computation of the nert year. The submission of such BIR notice will no longer be necessary if previously transmitted and received by the BSP in compliance with Section 3.L of the BSP Memorandum Nos. M-20O9445 dated 17 Novernber 2OO9 and M-2O1OO13 dated 31 May 2010. 3.2 The ASF, net of the 2% Creditable Withholding Tax (CWT), shall be debited from the DDA on the specified date referred to in the notice of ASF billing under item 1.. 3.3 The following timelines shall be observed on the submission of annual withholding tax documents to BSP at the address indicated in item 2 hereof: Tax Documents Due Date 1,. Original copy of BIR Form No. On or before 31 2307 - Certificate of Creditabfe December 2O11 Tax Withheld at Source 2. Original Duplicate Cnpy of BIR On or before 31 Form No. 1501E Monthly December 20L1 Remittance of Creditable Income Taxes Withhefd (Expandedl, dufy

received by BlR, if manually filed, or duly supported with BIR confrrmatirgn notice/advice, if electronically filed. 3. Certified true copy of BtR official On or before 31 receipt/payment confirmation December 2011 receipt 3.4 Considering that the withholding tax documents enumerated in item 3.1 will be used to avail the tax credits for filing the annual income tax return of the BSP, the failure to submit all of the enumerated documents within the stated deadline will compel the BSP toimmediately debit an amount equivafent to the 2% A IT frqm the DDA of Banks/NBQBs concerned, with no obligation on the part of the BSP to reimburse said amount in case of late submission. In case of DDA deficiency, the provisions in Sections X901.1 (2008- X608.11 and 4901Q.1 (20084652Q) of the MORB and MORN BFl, respectively, as a rnended, sh all a pply. 3.5 The above guidelines on withholding tax shall be strictly enforced pending resolution of the tax treatment on the ASF being assessed by the BSP. Th is Memorandu m sh all take effect i mmed iately. Deputy Govern w May 2011 Pagc 3 of 3