BIR Ruling

April 11, 1973 Judge Milagros A. German 74 A. St. Mary, Cubao Quezon City M a d a m : This refers to your letter dated March 31, 1973 relative to your query on the taxability or non-taxability of the GSIS dividends. For ready reference, I have the honor to quote the pertinent portion of Par. (c) of Section 28, originally Section 25 of C.A. No. 186 otherwise known as the GSIS Act, as further amended by R.A. No. 728, as follows: "Sec. 28. Miscellaneous provisions . xxx xxx xxx" "(c) Except as herein otherwise provided, the Government Service Insurance System, all benefits granted under this Act, and all its forms and documents required of the members shall be exempt from all taxes. . . ." Since under the foregoing provision, a GSIS dividends is in nature of a benefit it is exempt from income tax. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue