Contributions to pension, housing and health funds amounting to more than required by law are subject to income and withholding tax effective last July 1, according to the Bureau of Internal Revenue (BIR).
The BIR has issued Revenue Memorandum Circular No. 53-2011, which affirms and clarifies an earlier ruling.
The BIR directive states that voluntary contributions to the Social Security System, Government Service Insurance System, Home Mutual Development Fund (Pag-IBIG Fund) and the Philippine Health Insurance Corp. (PhilHealth) are subject to tax.
The BIR said that such contributions are considered investments and are thus taxable, adding that it would no longer entertain any requests for tax exemption on these contributions.
Just so you'll be updated guys with what's being deducted from our earnings through our mandatory government benefits. Like the most of you, i too, am an employee. :)
tight hugs,
AC
The BIR has issued Revenue Memorandum Circular No. 53-2011, which affirms and clarifies an earlier ruling.
The BIR directive states that voluntary contributions to the Social Security System, Government Service Insurance System, Home Mutual Development Fund (Pag-IBIG Fund) and the Philippine Health Insurance Corp. (PhilHealth) are subject to tax.
The BIR said that such contributions are considered investments and are thus taxable, adding that it would no longer entertain any requests for tax exemption on these contributions.
Just so you'll be updated guys with what's being deducted from our earnings through our mandatory government benefits. Like the most of you, i too, am an employee. :)
tight hugs,
AC
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