In line with Republic Act No 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) bill signed by President Rodrigo Roa Duterte last December 19, 2017, please be advised regarding the upcoming adjustments in tax rates that will impact bank products and services effective January 1, 2018.
1. Final Tax on Foreign Currency Deposits
|Description||Current Rate||Effective Jan. 2018|
|Interest income from foreign currency deposits||7.50%||15%|
2. Documentary Stamp Tax Adjustments:
|Base||Taxable Unit||Current Rate||Effective Jan. 2018|
|Bank Checks, Drafts, Certificate of Deposit not bearing interest and other Instruments||On each Document||Php1.50||Php3.00|
|All Debt Instruments||Php200.00 or fraction thereof||Php1.00||Php1.50|
|All Bills of Exchange or Drafts; Upon Acceptance of Bills of Exchange and Others; Foreign Bills of Exchange and Letters of Credit, including among others:
||Php200.00 or fraction thereof||Php0.30||Php0.60|
|Bank Certifications including Deeds of Purchase of Receivables||On each certificate||Php15.00||Php30.00|
|Mortgages, Pledges, and Deeds of Trust (including Deeds of Assignments and Hold-out Agreements)||First Php5,000.00||Php20.00||Php40.00|
|On each Php5,000.00 or fractional part thereof in excess of Php5,000.00||Php10.00||Php20.00|
For the complete list of tax adjustments for financial services and Documentary Stamps, please refer to our TRAIN FAQs that you can download here.
We will advise you of any further developments on this matter upon the issuance of the implementing Revenue Regulations.
For your information and guidance.