Tax Resources PH icon

TAX RESOURCES PH

Tax resources for Filipinos

RMC No. 47-2011: Clarifies the taxability of interest from savings and time deposits of cooperative’s members

Files
Download this file

Summary

RMC No. 47-2011 clarifies the taxability of interest from savings and time deposits of cooperative members under Section 24 (B) of the NIRC of 1997, as amended.

CollapseExpand

Key points

  1. General rule. Section 24 (B) imposes a 20% Final Tax on interest from any currency bank deposit and on yield or other monetary benefit from deposit substitutes and from trust funds and similar arrangements.
  2. Cooperatives. In Dumaguete Cathedral Credit Cooperative vs. CIR, the Supreme Court ruled that cooperatives are not required to withhold taxes on interest from savings and time deposits of their members.

Who is affected

  • Cooperatives
  • Cooperative members with savings and time deposits

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.