Pursuant to Republic Act No. 12214, otherwise known as the Capital Markets Efficiency Promotion Act (CMEPA), please be informed that beginning July 1, 2025, the rate of final withholding tax on foreign currency deposits for residents shall increase from 15% to 20%. Interest from foreign currency deposits of non-residents shall continue to be exempt from final withholding tax.
Furthermore, interest income from peso long-term deposits shall, beginning July 1, 2025, be subject to final withholding tax of 20% regardless of non-pretermination.
The foregoing rates shall apply regardless of the application of the automatic renewal clause on your deposit account. As necessary, we shall advise you of changes, if any, in the revenue regulations that the Bureau of Internal Revenue may issue.
Thank you.
