RR No. 2-2020: Implements the tax exemption provisions of Republic Act No. 11211 (“An Act Amending Republic Act Number 7653, Otherwise Known as “The New Central Bank Act”, and for Other Purposes”)

Key points

1. Exempt income. The BSP is exempt from all national internal revenue taxes on income from its governmental functions. This covers income from its supervision of banks and its regulatory and examination powers over non-bank financial institutions with quasi-banking functions, money service businesses, credit granting businesses and payment system operators.
2. Price stability functions. Income earned in pursuing its primary objective is also exempt. That objective is maintaining price stability conducive to balanced and sustainable growth, promoting monetary and financial stability, and keeping the peso convertible.
3. Proprietary income. All other income is proprietary income and is subject to the applicable national internal revenue taxes.

Who is affected

• Bangko Sentral ng Pilipinas (BSP)