RR No. 8-2008: Supplements RR No. 09-2004, as amended by RR No. 10-2004, by clarifying that the transactions of Bangko Sentral ng Pilipinas entered into in the exercise of its governmental/regulatory authority are outside of the coverage of the Gross Receipts Tax

Summary

RR No. 8-2008 supplements RR No. 09-2004, as amended by RR No. 10-2004, by clarifying that Bangko Sentral ng Pilipinas transactions made in exercising its governmental or regulatory authority are outside the Gross Receipts Tax under Sections 121 and 122 of the NIRC.

Key points

1. BSP functions. The BSP is the constitutionally-mandated independent central monetary authority and performs governmental functions under the 1987 Constitution and RA No. 7653. Its activities and transactions aim at those mandates and not at commercial or business activities.
2. Revenues do not make it a business. Revenues the BSP earns from its operations do not turn its activities into a business undertaking. The GRT is a tax on the privilege of engaging in business, so it is not imposable on revenues from the BSP’s legally-mandated functions.
3. Coverage of Sections 121 and 122. The GRT on banks, quasi-banking non-bank financial intermediaries, other non-bank financial intermediaries and financing companies, and persons doing similar banking or financing activities, does not apply to BSP revenues from those functions.

Who is affected

• Bangko Sentral ng Pilipinas

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