Banking & Taxation


Isla Lipana & Co. 
Tax Alert

Tax Alert No. 6 | 1 March 2016 |

  Tax Alert No. 6 [Revenue Memorandum Circular No. 24-2016 dated 24 February 2016]
Reiteration of tax exemption of interest income from deposits of non-stock non-profit educational institutions
  Dear Clients and Friends:

Please be informed that the Commissioner of Internal Revenue has issued Revenue Memorandum Circular No. 24-2016 dated 24 February 2016 ("the Circular") to reiterate the requirements provided under Department of Finance ("DOF") Order No. 149-95 for tax exemption of non-stock, non-profit educational institutions.

Under the DOF Order, non-stock, non-profit educational institutions are required to submit the following documents annually to the Revenue District Office ("RDO"), together with the annual income tax returns/annual information returns and audited financial statements:

  • Certification from their depository banks as to the amount of interest income earned from passive investments not subject to 20% final withholding tax;
  • Certification of actual utilization of the said income; and
  • Board Resolution by the school administration on proposed projects to be funded out of money deposited in banks or placed in money markets.
The RDO shall conduct an audit of the annual information return filed to determine compliance with the conditions set forth in the certificate of exemptions and the tax liabilities, if any.

You may access the full version of this Circular through the BIR website.

For any inquiry or request for assistance, any one of our Tax Partners and Principal may be contacted at 63 (2) 845 2728:

  • Alex Cabrera Ext. 2002 (or at 459 2002)
  • Malou Lim Ext. 2016 (or at 459 2016)
  • Fedna Parallag Ext. 3109 (or at 459 3109)
  • Carlos Carado II Ext. 2020 (or at 459 2020)
  • Lawrence Biscocho Ext. 2007 (or at 459 2007)
  • Roselle Caraig Ext. 2023 (or at 459 2023)
  • Harold Ocampo Ext. 2029 (or at 459 2029)
Please also feel free to contact anyone from our Tax Services Group.

Yours truly,

Malou Lim 
Tax Managing Partner 
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.


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