Instruments Included as Deposit Substitutes
- Deposit substitutes may include various instruments described under Section 22 (Y) of the National Internal Revenue Code of 1997, as amended.
- Examples of such instruments include:
- Bankers’ acceptances
- Promissory notes
- Repurchase agreements (including reverse repurchase agreements between the Bangko Sentral ng Pilipinas (BSP) and authorized agent banks)
- Certificates of assignment or participation
- Similar instruments with recourse
Exemptions from Classification as Deposit Substitutes
- Debt instruments issued for interbank call loans with a maturity not exceeding five (5) days are exempt from being considered deposit substitutes.
- This exemption covers loans to cover deficiencies in reserves against deposit liabilities.
- The exemption explicitly includes transactions between or among banks and quasi-banks.
Directive to Revenue Officers
- All internal revenue officers are instructed to disseminate this Circular widely to ensure awareness and compliance.
Authority and Adoption
- The Circular was adopted on February 9, 2009.
- Signed by Sixto S. Esquivias IV, Commissioner of Internal Revenue.