RMC No. 66-2012: Defines the taxation of rural banks formed through consolidation

Key points

1. No exemption if already availed. A consolidated rural bank is not entitled to the tax exemption under Section 15 of Republic Act No. 7353 where the constituent rural banks previously availed of that exemption.
2. Remaining period. If either or both constituent rural banks could not enjoy the exemption for the entire five (5)-year period, the consolidated rural bank is entitled to it for the remaining period.

Who is affected

• Rural banks formed through consolidation
• Constituent rural banks

Deadlines and effectivity

• Exemption period: five (5) years, remaining period only where not fully enjoyed