REVENUE MEMORANDUM CIRCULAR NO. 66-2012 issued on October 31, 2012 defines the taxation of rural banks formed through consolidation.
        Rural banks formed through consolidation (“consolidated rural banks”) of existing rural banks (“constituent rural banks”)shall not be entitled to the tax exemption under Section 15 of Republic Act No. 7353 in cases when the constituent rural banks previously availed of this exemption. However, should any or both the constituent rural banks not be able to enjoy the tax exemption for the entire five (5)-year period, then the consolidated rural bank shall be entitled to the exemption for the remaining period.