HOME  ABOUT THE BANK  MONETARY POLICY  BANKING SUPERVISION  PAYMENTS & SETTLEMENTS  STATISTICS  FEEDBACK CORNER
   BSP NOTES & COINS  MONETARY OPERATIONS  LOANS-CREDIT & ASSET MGT  PUBLICATIONS & RESEARCH  REGULATIONS  PROCUREMENT

Feedback Corner

Regulations

Regulations

Memoranda

Date Issued: 11.29.2007


MEMORANDUM NO. M-2007-038

To: ALL BANKS AND NON-BANK FINANCIAL INSTITUTIONS AUTHORIZED TO ENGAGE IN TRUST BUSINESS

Subject : SDA Placements of Trust Departments/Entities as agent for Tax-Exempt Institutions (TEI) and Accounts

Further to Memorandum No. M-2007-011, dated 08 May 2007, the following guidelines shall be observed for placements of tax-exempt accounts in the Special Deposit Account:

1. Placement of tax-exempt accounts in the SDA facility should comply with existing minimum placement and incremental requirements for the SDA facility.

2. On transaction date, the Trust department / entity must inform the BSP the exact amount of the tax-exempt placement in the SDA and submit the following supporting documents:

  1. Copy of the relevant ruling from the Bureau of Internal Revenue, duly certified by the latter, affirming the exemption from taxes of the income earned by concerned TEls or accounts from their investments;
     
  2. Copy of the Board Resolution duly certified by the Corporate Secretary authorizing the placement (directly for managed funds or indirectly through designated trustee bank/financial institution in the case of managed trust funds) in the SDA facility;
     
  3. Copy of the covering trust agreement; and
     
  4. Certification from the trust department that such placements, for as long as these are outstanding, are owned by the specified TEls and are accordingly exempt from said 20% FWT. (See Annex 1)

Advance copies may be sent through facsimile (facsimile number 523-3348) or electronic mail of BSP-Treasury Back Office personnel (jsiguenza@bsp.gov.ph). 

Absent the supporting documents by end of the business day, the tax-exempt placement will be cancelled.

For outstanding tax-exempt SDA placements as of 01 November 2007, trust departments must submit the documents specified in item (2) hereof on or before 04 December 2007 to avail of the exemption from withholding tax.

For compliance

This Memorandum shall take effect immediately upon its publication in a newspaper of general circulation.


AMANDO M. TETANGCO, JR
Governor

Download Signed Document

For pdf copies of signed issuances not yet posted in this website, kindly e-mail the Administrative Services Department at external_issuances@bsp.gov.ph. To facilitate retrieval of requested issuance, please indicate type and number, date, and subject.

For queries on the contents of issuances, please e-mail bspmail@bsp.gov.ph.