All interest earnings will be subject to 20% withholding tax. Please refer to the sample computation below for Time Deposit Accounts on a 12-month term.
Your interest will be paid as a lump sum at the end of the Time Deposit term which for this example, will be paid at the end of the 12-month term.
Deposit Amount - ₱600,000
Interest Rate Earned - ₱53,280
Net Interest Earned (Less Withholding Tax of 20%) - ₱42,624
Deposit Amount - ₱1,000,000
Interest Rate Earned - ₱88,800
Net Interest Earned (Less Withholding Tax of 20%) - ₱71,040
Deposit Amount - ₱2,000,000
Interest Rate Earned - ₱177,600
Net Interest Earned (Less Withholding Tax of 20%) - ₱142,080
