BIR Ruling No. 276-2011 dated August 10, 2011 Interest Income from Employees' Trust

Facts:

►  B Co., a non-stock, non-profit corporation previously classified by the BIR as
an employees' trust, requested for a confirmation of the exemption from FWT
of its interest income derived from money market placements and bank
deposits, deposit substitutes, trust funds and/or similar arrangements/
investments.

Issue:

►  Is the interest income derived by B Co. from its money market placements
and bank deposits, deposit substitutes, trust funds and/or similar
arrangements/ investments exempt from FWT?

Ruling:

►■   Yes.  Under Section 60(B) of the Tax Code, an employees'trust is exempt from income tax. Since the final tax and the withholding tax are contained within the title on "Income Tax", it follows that the trust is exempt from the coverage of the withholding tax (WT) regulations


BIR Ruling No. 276-2011 dated August 10, 2011Interest Income from Employees' Trust