BIR REVENUE MEMORANDUM CIRCULAR NO. 84-2012

: The Circular clarifies the tax treatment of interest income earnings on loans that are not securitized, assigned, or participated out.
: The CWT rate is two percent (2%).
: No, the Circular specifically addresses interest income on loans that are not securitized, assigned, or participated out.
: Interest income paid remains subject to Creditable Withholding Tax at the rate of two percent (2%).
: Section 57(8) of the Tax Code, as amended, in relation to Section 2.57.2 (M) of Revenue Regulations No. 2-98, as amended.
: The twenty percent (20%) Final Withholding Tax (FWT) and Creditable Withholding Tax (CWT) cover interest on debt securities.
: Sections 24(B)(1), 25(A)(2), 27(D)(1), 28(A)(7)(a), and Section 57(B) of the Tax Code, as amended.
: All prior issuances including rulings inconsistent with this Circular are revoked or modified accordingly.
: The Circular took effect immediately upon its release.
: All revenue officers and employees are enjoined to give the Circular as wide publicity as possible.