Effective July 1, 2025

Withholding Tax Updates on Interest Earned under the Capital Markets Efficiency Promotion Act (CMEPA) or Republic Act No. 12214

FCDU (US Dollar Deposits):

Effective July 1, 2025, the withholding tax on interest earned from US Dollar Savings Accounts will increase from 15% to 20%, pursuant to the recently enacted Capital Markets Efficiency Promotion Act (CMEPA) or Republic Act No. 12214.

For USD Special Savings Accounts, the new tax rate will apply only to rollovers and new placements made on or after July 1, 2025.

Long Term Deposits:

Under CMEPA, interest earned on Long Term Deposits (5 years and above) will now be subject to a 20% withholding tax. As a result, the GRBank Long-Term Deposit (5-year tax-free) will no longer be offered starting July 1, 2025.
For existing Long Term Deposits, the interest will remain tax-free if held until maturity. However, if pre-terminated, the applicable taxes and penalties will be charged accordingly.