BSP declared ‘not a bank’ and exempted from GRT
A memorandum from the Bureau of Internal Revenue has declared the Bangko Sentral ng Pilipinas (BSP) not a bank and therefore exempted from GRT or gross receipt tax.
The Revenue Memorandum Circular 65-2008, which states that BSP is exempted from GRT and some other taxes was signed by former BIR commissioner Lilian B. Hefti. It was issued to clarify BSP’s taxation status and the legal basis for imposing taxes or implementing tax exemptions for BSP.
The memo states that BSP is not a bank or a non-bank financial intermediary performing quasi-banking functions. The ruling is still in effect, said BSP deputy governor Armando L. Suratos, even if Hefti is no longer BIR chief.
“The memo was a result of almost a year of consultations between the BSP and the BIR (and) we agree with them that BSP is not a bank,” said Suratos. “The (circular) is still in placed.” He said the memo only clarified GRT status and not other taxes, such as value added tax (VAT) which the BSP still pays.
While it clarify BSP’s taxation status, the circular opened other arguments for the institution because of BIR’s declaration that it is not a bank after all.
For one, like a bank, the BSP accepts deposits and releases loans and as a regulatory body, its responsibilities include money, banking and credit. The BIR said that while BSP is not bank, it is engaged in banking activities as per its constitutional and statutory mandates but not for commercial
or business purposes.
July 13, 2009
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Tags: bank, banking, BIR, BSP, credit, finance, GRT, money, Philippines, tax exemption В· Posted in: money
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