BIR Ruling No. 363-2020

REPUBLIC OFTHE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

Quezon City

Section 3 and Section 6 of Revenue Regulations No. 09-04

Dr- JUN 2 3 2020 120

Bangko Sentral ng Pilipinas A. Mabini St. cor. P. Ocampo St..

Malate, Manila

Attention: Eduardo Q. Bobier

Managing Partner

Gentlemen:

This refers to your letter dated January 14, 2020 requesting for confirmation on

whether or not the Bangko Sentral ng Pilipinas (BSP) is obligated to withhold percentage

taxes on interest income payments to banks and non-bank financial institutions.

In reply, please be informed that Sections 3 and 6 of Revenue Regulations (RR) No.

09-04 entitled "Implementing Certain Provisions of Republic Act No. 9238, Re-Imposing the

Gross Receipts Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-

Banking Functions and Other Non-Bank Financial Intermediaries Beginning January 1,

2004" provides:

"SECTION 3. Imposition of Gross Receipts Tax (GRT) on Banks and

Non-Bank Financial IntermediariesPerforming Quasi-Banking

Functions. There shall be collected on gross receipts from sources

within the Philippines by all banks and non-bank financial intermediaries

performing quasi-banking functions in accordance with the following

schedule:

(a On interest, commissions and discounts from lending activities as

well as income from financial leasing, on the basis of remaining maturities

of instruments from which such receipts are derived:

Maturity period of five (5) years or less -- 5%

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

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registered. Provided, that, if the taxpayer is an EFPS taxpayer, the rules SECTION 6. Time and Venue for the Filing and Payment of GRT. taxable month using BIR Form 2551M to the concerned AAB of the and regulations governing the filing of returns and payment of taxes under The GRT due computed and determined in accordance with these Regulations shall be paid monthly within 20 days following the end of the RDO/LTDO/LTAID I where the taxpayer is registered or required to be EFPS shall be observed." JUN 2 9 2020

the National Internal Revenue Code (NIRC), as amended, within 20 days following the end of the taxable month where it is registered. financial intermediaries to pay monthly the gross receipts tax imposed under Section 121 of Based on the foregoing provisions, it is the direct liability banks and non-bank

Please be guided accordingly.

Very truly yours,

Commissioner of Internal Revenue 1ausaa CAESAR R. DULAY

K-1 035624

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