Practice question
A resident citizen opens a new ordinary foreign-currency bank deposit in 2026. Its interest is Philippine-source income covered by Section 24(B)(1), with no exemption or treaty relief. What final tax rate applies?
- 0% solely because the currency is foreign
- 5%
- 10%
- 15% under the old foreign-currency-deposit rule
- 20%
Legal references
- NIRC Sections 22(MM) and 24(B), as amended by RA 12214, Sections 3-4: https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html
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