RR No. 2-2020 — Implements the tax exemption provisions of Republic Act No. 11211 (“An Act Amending Republic Act Number 7653, Otherwise Known as “The New Central Bank Act”, and for Other Purposes”) (Published in Malaya Business Insight on January 16, 2020)

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City BUREAUOFINTEPNAI RFVENIT NTYY JAN 1 5 2020 aio ay N

REVENUE REGULATIONS NO. 2- 2020 RECORDS MGT. DIVISION

JAN 1 5 2020

SUBJECT Implements the Tax Exemption provisions of Republic Act No. 11211.

Otherwise Known as "The New Central Bank Act", and for Other Purposes Otherwise Known as "An Act Amending Republic Act Number 7653.

TO All Internal Revenue Officers and Other Concerned

SECTION 1. SCOPE. - Pursuant to the provisions of Section 244 of the National Internal Revenue Code ("NIRC"), as amended, the following Regulations are hereby promulgated to implement the tax provisions of R.A. No. 11211, otherwise known as "An Act Amending Republic Act Number 7653, Otherwise Known as "The New Central Bank Act". and for Other Purposes".

operations of banks and its regulatory and examination powers over non-bank financial institutions performing quasi-banking functions, money service businesses, credit granting businesses and payment system operators, and to maintain price stability, monetary and Sentral ng Pilipinas (BSP) considered as derived from governmental functions, such as those financial stability and the convertibility of the peso. activities in the pursuit of BSP's primary objectives to exercise of its supervision over the SECTION 2. COVERAGE. These regulations cover all income of the Bangko

internal revenue taxes on income derived from its governmental functions, specifically: SECTION 3. TAX EXEMPTION. - The BSP shall be exempt from all national

(a) income from its activities or transactions in the exercise of its

functions, money service businesses, credit granting businesses and payment supervision over the operations of banks and its regulatory and examination powers over non-bank financial institutions performing quasi-banking system operators; and

conducive to a balanced and sustainable growth of the economy, and the convertibility of the peso. promotion and maintenance of monetary and financial stability and the (b) income in pursuit of its primary objective to maintain price stability

proprietary income and shall be subject to ali applicable national internal revenue taxes. All other incomes not included in the above enumeration shall be considered as

revenue issuances or parts thereof, which are inconsistent with these Regulations are hereby repealed or modified accordingly. SECTION 4. REPEALING CLAUSE. All revenue rules and regulations, and other

after publication in the Official Gazette or in a newspaper of general circulations, whichever comes first. SECTION 5. EFFECTIVITY. These Regulations shall take effect fifteen (15) days

CARLOS G. DOMINGUEZ III Secretary of Finance

Recommending Approval: DEC 2 0 2019

1asanry

CAESAR R. DULAY Commissioner of Internal Revenue 031288

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RIREATTFINTERNALREVENUE JAN 15 2020 9:10.aM W TYYN *:

RECOKDS MGT.DIVISION