OFW bank exempted from remitting dividends

INQUIRER.net stock photo

President Duterte has exempted the Overseas Filipino Bank (OFBank) from remitting dividends to the national government for 2016 to help support the bank’s plans and programs for Filipinos abroad. In Executive Order No. 146, Mr. Duterte adjusted from 50 percent to zero percent the percentage of net earnings to be declared and remitted by the OFBank to the national government for 2016. The adjusted dividend rate was only applicable for the said year. Finance Secretary Carlos Dominguez III had recommended the rate adjustment to support the capital position of the OFBank and to allow it to comply with Bangko Sentral ng Pilipinas regulations. This is also meant to support the bank’s short- and long-term plans and programs for overseas Filipino workers (OFWs). All government-owned and -controlled corporations are required to declare and remit at least 50 percent of their annual net earnings as dividends to the national government. —Leila B. Salaverria