Recto: Only 0.4% of deposits affected by CMEPA interest income tax rate

Estimates using data from the Bangko Sentral ng Pilipinas show only 0.4% of total deposits will be affected by the 20% interest income tax rate of the Capital Markets Efficiency Promotion Act

This is AI generated summarization, which may have errors. For context, always refer to the full article.

MANILA, Philippines – The implementation of the Capital Markets Efficiency Promotion Act angered many netizens for supposedly slashing their interest earnings. Interest earned by deposits of three years and below have always been taxed at 20%. These are often seen in passbooks and bank statements, and it has also been implemented since the National Internal Revenue took effect in 1998.The Department of Finance previously clarified that CMEPA only taxes interest income, and the new rate only applies to long-term deposits of over five years.

The remaining 99.6% of all deposits were already subject to the 20% interest income tax rate long before CMEPA took effect.

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