Preamble
WHEREAS,interest on bank deposit is one of the items includible in gross income; WHEREAS,many bank depositors fail to declare interest income in their income tax returns. WHEREAS,in order to maximize the collection of the income tax on interest on bank deposits, it is necessary to apply the withholding system on this type of fixed or determinable income; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the following;