Section 2
SEC. 2. Section 21 of the same Code is hereby amended by adding a new paragraph to read as follows: “SEC. 21. Rates of tax on citizens or residents. – xxx xxx xxx Interest from Philippine Currency bank deposits and yield from deposit substitutes whether received by citizens of the Philippines to the final tax as follows: (a) 15% of the interest on savings deposits, and (b) 20% of the interest of time deposits and yield from deposit substitutes, which shall be collected and paid as provided in Sections 53 and 54 of this Code: Provided, That no tax shall be imposed if the aggregate amount of the interest on all Philippine Currency deposit accounts maintained by a depositor alone or together with another in any one bank at any time during the taxable period does not exceed Eight Hundred Pesos (P800.00) a year or Two Hundred Pesos (P200.00) per quarter; Provided, further, That if the recipient of such interest is exempt from income taxation, no tax shall be imposed and that, if the recipient is enjoying preferential income tax treatment then preferential tax rates income tax treatment then the preferential tax rates so provided shall be imposed.”