Comment from Bulawan, Edgar
Edgar BulawanOtherBusiness
Summary: Edgar C. Bulawan, a Regulatory Compliance Officer for PNB Remittance Centers, Inc., is seeking clarification on how the proposed excise tax applies to specific transaction types. He asks whether the tax is required when a client deposits cash directly into the company's U.S. bank account rather than conducting an over-the-counter transaction at a physical location.
My name is Edgar C. Bulawan, Regulatory Compliance Officer of PNB Remittance Centers, Inc., a money transmitter company. My question/comment is:
If our client deposits cash directly to our company's deposit account with a U.S. bank for his remittance transaction to the Philippines, is the client obligated to pay the 1% excise tax or the company require the client to deposit the following amount: e.g.
1) Amount of remittance$1,000
2) Service Fee8
3) 1% Remittance Excise Tax10
Total Cash Deposit$1,018
Or not required to pay the 1% excise tax as the cash transaction was not conducted/received at our company's location (over-the-counter).