Revenue Regulations No. 17-2020, Implementing the Tax Neutrality Provision of Republic Act No. 11439, Otherwise Known as "An Act Providing for the Regulation and Organization of Islamic Banks"

The Revenue Regulations were promoted to implement Republic Act No. 11439, which mandates a neutral tax treatment between Islamic banking transactions and equivalent banking transactions within the provisions of the National Internal Revenue Code of 1997. 

The regulations provide that Islamic banking transactions shall be taxed no more heavily (and no more lightly) than conventional banking transactions. It specifies banking principles in order to implement the tax neutrality provisions. It also provides for accounting and reportorial requirements including compliance of financial statements with the Philippine Financial Reporting Standards. It also mandates that conventional banks with Islamic banking arrangements segregate the transactions of the Islamic banking unit from the conventional banking business.