Notice To Depositors: Changes in Final Withholding Tax on Interest Income Under the Capital Markets Efficiency Promotion Act (CMEPA)
Pursuant to the Capital Markets Efficiency Promotion Act (CMEPA) or Republic Act No. 12214, effective July 1, 2025, the final withholding tax (FWT) on interest income earned from the affected accounts shall be adjusted as follows:
| Product Type and Accountholder | New FWT Rate starting July 1, 2025 |
| Foreign Currency Savings and Time Deposit owned by Philippine Residents | 20% |
• For Foreign Currency Savings, accounts opened before, on, or after July 1, 2025 will follow the 20% FWT on interest income earned.
• For Foreign Currency TD, accounts opened before July 1, 2025 will retain the prevailing 15% FWT until term maturity. Roll-overs and/or new Foreign Currency TD accounts placed starting July 1, 2025 will follow the new FWT rate on interest income earned.
Prevailing RBank 5-year PESO Time Deposit individual accounts shall retain the prevailing tax-free arrangement until account maturity.
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Published on June 30, 2025