TITLE V — OTHER PERCENTAGE TAXES (2) Diplomatic Services. — Amounts paid for messages transmitted by any embassy and consular offices of a foreign government; (3) International Organizations. — Amounts paid for messages transmitted by a public international organization or any of its agencies based in the Philippines enjoying privileges, exemptions and immunities which the Government of the Philippines is committed to recognize pursuant to an international agreement; and (4) News Services. — Amounts paid for messages from any newspaper, press association, radio or television newspaper, broadcasting agency, or newstickers services, to any other newspaper, press association, radio or television newspaper broadcasting agency, or newsticker service or to a bona fide correspondent, which messages deal exclusively with the collection of news items for, or the dissemination of news item through, public press, radio or television broadcasting or a newsticker service furnishing a general news service similar to that of the public press. SEC. 121.  Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions. — There shall be collected a tax on gross receipts derived from sources within the Philippines by all banks and non-bank financial intermediaries in accordance with the following schedule: (a) On interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of remaining maturities of instruments from which such receipts are derived: Maturity period is five years or less 5% Maturity period is more than five years 1% (b) On dividends and equity shares and net income of subsidiaries 0% (c) On royalties, rentals of property, real or personal, profits, from exchange and all other items treated as gross income under Section 32 of this Code 7% (d) On net trading gains within the taxable year on foreign currency, debt securities, derivatives, and other similar financial instruments 7% Provided, however, That in case the maturity period referred to in paragraph (a) is shortened thru pretermination, then the maturity period shall be reckoned to end as of the date of pretermination for purposes of classifying the transaction and the correct rate of tax shall be applied accordingly. Provided, finally, That the generally accepted accounting principles as may be 138 Isla Lipana & Co., the Philippine member firm of the PwC network