MORNBFI Vol. 1 - Planters Development Bank

APP. Q-47a08.12.31SPECIAL DEPOSIT ACCOUNT PLACEMENTS OF TRUST DEPARTMENTS/ENTITIES AS AGENT FOR TAX-EXEMPT INSTITUTIONS AND ACCOUNTS(Appendix to Subsection 4409Q.2)Section 1. Placement of tax-exemptaccounts in the SDA facility should complywith existing minimum placement andincremental requirements for the SDAfacility.Sec. 2. On transaction date, the trustdepartment/entity must inform the BSP theexact amount of the tax-exempt placementin the SDA and submit the followingsupporting documents:a. Copy of the relevant ruling from theBIR, duly certified by the latter, affirmingthe exemption from taxes of the incomeearned by concerned TEls or accounts fromtheir investments;b. Copy of the board resolutionduly certified by the corporatesecretary authorizing the placement(directly for managed funds orindirectly through designated trusteebank/FI in the case of managed trustfunds) in the SDA facility;c. Copy of the covering trustagreement; andd. Certification from the trustdepartment that such placements, for as longas these are outstanding, are owned by thespecified TEls and are accordingly exemptfrom said twenty percent (20%) finalwithholding tax (FWT). Shown in Annex 1.Advance copies may be sent throughfacsimile (facsimile number 523-3348) orelectronic mail of BSP-Treasury Back Officepersonnel (jsiguenza@bsp. gov. ph).Absent the supporting documents byend of the business day, the tax-exemptplacement will be cancelled.Sec. 3. For outstanding tax-exempt SDAplacements as of 01 November 2007,trust departments must submit thedocuments specified in Item "2" hereofon or before 04 December 2007 to availof the exemption from withholding tax.( M-2007-038 dated 29 November 2007)Manual of Regulations for Non-Bank Financial Institutions Q RegulationsAppendix Q-47a - Page 1