Section 14
SEC. 14. Section 260 of the same Code is further amended to read as follows: “SEC. 260. Tax on banks and non-bank financial intermediaries. – There shall be collected a tax on gross receipts derived from sources within the Philippines by all banks and non-bank financial intermediaries in accordance with the following schedule: (a) On interest, commissions and discounts from lending activities as on the basis of remaining maturities of instruments from which such receipts are derived. Short-term maturity - not in excess of two (2) years 5% Medium-term maturity over two(2) years but not exceeding four (4) years 3% Long-term maturity - (i) over four (4) years but not exceeding seven (7) years 1% (ii) Over seven years 0% (b) on dividends 0% (c) On royalties, rentals of property , real or personal, profits from exchange and all other items treated as gross income under