Section 7
SEC. 7. Section 24 [cc] of the National Internal Revenue Code is hereby renumbered and amended as 24 [d] and a new sub-paragraph denoted as 24 [e] is hereby added, both to read as follows: “[d] Rates of tax on interest from deposits and yield or any other monetary benefit from deposit substitutes and from trust fund and similar arrangements. – Interest on Philippine currency bank deposits and yield or any other monetary benefit from deposit substitutes and from trust fund and similar arrangements received by domestic or resident foreign corporation shall be subject to a 17-1/2% final tax to be collected and paid as provided in Sections 51 and 52 of this Code, except income received by [1] foreign governments, [2] financing institutions owned, controlled, or enjoying refinancing from them, and [3] international or regional financing institutions established by governments.” “[e] Tax on Royalties. – Royalties shall be subject to 15% final tax, the return and payment of which shall be in accordance with Sections 51 and 52 of this Code.