Collection of the Annual Supervisory Fees (ASF) for the Year 2019

BANoKo SertrnaL No Ptr-rprNAs OFFICE OF THE DEPUW GOVERNOR FINANCIAL SUPERVISION SECTOR MEMORANDUM NO. M.2019- O1O TO : ALL NON-STOCK SAVINGS AND IOAN ASSOCIATIONS (NSStAs) AND TRUST CORPORATIONS (TCsl Subject : Collection of the Annual Supervisory Fees (ASF) for the Year 2019 Pursuant to Section 46555 and Subsection 4901T.1 of the Manual of Regulations for Non-Bank Financial Institutions (MORBNFI), the following guidelines shall govern the computation and collection by the Bangko Sentral Ng Pilipinas (BSP) and the payment by NSSLAs and TCs of the 2019 ASF. L. Computation of ASF for 2019 ln view of the omendments to Republic Act (R.A.) No. 76531, which took effect on 06 March 2079, the ASF computation for Large Taxpayers shall be gross of Creditoble Withholding Tax (CWT). Pleose refer to Section 4 of this Memorondum for guidelines. NSSLAS The prescribed rate for the ASF is L/65 of t% of its Average Assessable Assets (AAA)2 of the immediately preceding year or the maximum amount of ASF per AAA range, whichever is lower, but shall not exceed the maximum amount provided below: Maximum Amount of Total AAA of NSSLA Annual Fees >P1.0 billion P500,000.00 >P750.0 million - P1.0 billion P400,000.00 >P500.0 million - P750.0 million P200,000.00 >P250.0 million - P500.0 million P100,000.00 >P100.0 million - P250.0 million P 50,000.00 up to P100.0 million P 10,000.00 Provided, That the minimum amount of annual fees of NSSLAs with AAA of up to P100.0 million shall be P10,000.00. 1 Amended by R.A. No. 11211 (An Act Amending R.A. No. 7653 Otherwise Known as "The New Central Bank Act", and for Other Purposes) 'AAA shall be the summation of end-of-quarter total assessable assets (end-of-quarter total assets per balance sheet, after deducting cash on hand and amounts due from banks) divided by the number of quarters in operation during the particular assessment period.

TCs The prescribed rate for the ASF is O.Ot% of the average monthly balance of assets under management (AUM)3 for the first three (3) years of the trust corporation's operations and O.O2o/o of the average monthly balance of AUM on the 4th year and onwards. Securities held under custodianship shall be exempt from annual fees. The MA of the preceding year/average monthly balance of AUM is derived from the reportsa submitted by the NSSLA/TC to the BSP in compliance with the standards and requirements prescribed under existing regulations. 2, Notification of Amount Due for 2019 and Mode of Payment The BSP Supervisory Data Center (SDC) shall send a billing notice in April 2019 to the NSSLA/TC for its ASF payment indicating, among others, the computation of the ASF due, the period covered by the ASF and the specific date when the ASF becomes due payable to the BSP. The BSP will only accept payments in the form of Cash or Manager's/Cashier's Check drawn payable to the BSP. 3. Exceptions Noted on Billing Notice of 2019 ASF Upon receipt of the BSP Notice of ASF billing, an NSSLA/TC is encouraged to check the accuracy of the billing and to submit any noted exceptions therein not later than ten (10) working days before the specified date of collection as indicated in the billing notice. The said exceptions, together with supporting documents, shall be submitted to: The Officer-ln-Charge Supervisory Data Center (SDC) Bangko Sentral Ng Pilipinas 1Lth Floor, Multi-Storey Building BSP Complex, A. MabiniStreet, Malate 1004 Manila 3 All funds, properties and securities, denominated in peso and other foreign currency, which the TC, acting as trustee, fiduciary and agent, shall manage, administer, hold, and/or take custody, for the use and/or benefit of persons other than the TC 4 Consolidated Statement of Condition (CSOC) for NSSLAs and Financial Reporting Package (FRP) for TCs Page2 of 4

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 im mediately succeeding year. 4. Creditable Withholding Tax on 2019 Supervisory Fees In accordance with the amendments to R.A. No. 7653, the Bangko Sentral shall be exempt from all national, provincial, municipal and city taxes on income derived from its governmental functions which include, among others, income from its activities or transactions in the exercise of its supervision over the 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 systems operators. An NSSLA/TC withholding a portion of the ASF on account of Subsections M and N of Section 2.57.2 of Bureau of Internal Revenue (BlR) Revenue Regulations (R.R.) No. 2-98, shall advise the BSP through written representation, within ten (10) working days before specified date of collection as indicated in the billing notice, of such intention together with the BIR Form No. 2307 indicating the amount withheld as CWT. Advance scanned copies in Portable Document Format (PDF) of the said representation and BIR Form should be submitted to [email protected]. Moreover, the following shall apply to NSSLA/TC with written representation and BIR Form No. 2307 submitted within the abovementioned prescribed period : 4.L The ASF, net of the CWT, shall be paid to the BSP on the specified date referred to in the notice of ASF billing under Section 2 above. 4.2 Three (3) original signed copies of BIR Form No. 2307 Certificate of Creditable Tax Withheld at Source, which exclusively pertain to the withholding on ASF shall be submitted to the SDC at the address provided in Section 3 above. The BIR Form No. 2307 shall accurately indicate, among others, the following details: 4.2.t Payee: Bangko Sentral ng Pilipinas 4.2.2 Tax ldentification Number: 000-354-790-000 4.2.3 Address: A. Mabini St. corner P. Ocampo Sr. St., Malate, Manila 4.2.4 Zip Code: 1004

ttl \ 4.2.5 The BIR-registered name of the payor-NSSLA/TC, as exactly indicated in the BIR Certificate of Registration (BlR Form No. 2303)of the NSSLA/TC. 4.2.6 the amount of income payment pertaining to the gross ASF 4.2.7 the tax withheld 4.2.8 the period of tax return. Furthermore, the BIR Form No. 2307 - Certificate of Creditable Tax Withheld at Source covering the withholding on ASF should not include other transactions with BSP and should pertain exclusively to the ASF. lf the concerned NSSLA/TC has other transactions with BSP, a separate BIR Form No. 2307 for the transaction/s shall be provided to BSP. 4.3 In case of failure of concerned NSSLA/TC to submit the duly accomplished forms within the deadline stated above or if such forms contain errors and discrepancies that would render the BIR Form No. 2307 invalid for claiming tax credits, the BSP shall be constrained to immediately bill the NSSLA/TC an amount equivalent to the CWT. This Memorandum shalltake effect immediately. For strict compliance Sector-ln-Charg .? April 2019