Summary
RMC No. 16-2009 clarifies which instruments are covered by the term deposit substitutes under Revenue Regulations No. 8-2008.
Key points
- Instruments covered. The term may include, but is not limited to, the instruments described in Section 22(Y) of the NIRC of 1997, as amended. These are bankers’ acceptances, promissory notes, repurchase agreements (including reverse repurchase agreements between the Bangko Sentral ng Pilipinas and any authorized agent bank), and certificates of assignment or participation and similar instruments with recourse.
- Exception. Debt instruments issued for interbank call loans with maturity of not more than five (5) days, to cover deficiency in reserves against deposit liabilities, are not deposit substitute debt instruments. This applies to loans between or among banks and quasi-banks.
Who is affected
- Banks and quasi-banks issuing or holding the listed instruments
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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