RMC No. 9-2016: Clarifies the taxability of Non-Stock Savings and Loan Associations for purposes of Income Tax, Gross Receipts Tax and Documentary Stamp Tax

Key points

1. Status of NSSLAs. NSSLAs are under the direct supervision and regulation of the Bangko Sentral ng Pilipinas. They are classified as Non-bank Financial Intermediaries (NBFIs) under the BSP Manual of Regulations.
2. Income Tax. NSSLAs are exempt from Income Tax on income they receive, including interest on deposits with any bank. Income from their properties, real or personal, or from any activity for profit, is subject to the applicable taxes under the 1997 NIRC, as amended, and disposition of properties is taxed by whether the property is a capital or ordinary asset.
3. Gross Receipts Tax. As an NBFI, an NSSLA is generally subject to Gross Receipts Tax on income from its operations, unless exempted under special rules.
4. Documentary Stamp Tax. NSSLAs are subject to DST under RR No. 13-2004, including on loan agreements, mortgages, pledges, foreclosures and sales. Under RR No. 9-2000, an NSSLA that is a party to a taxable transaction remits the DST due, regardless of who bears the burden.

Who is affected

• Non-Stock Savings and Loan Associations