BIR Ruling

April 4, 1973 Mr. Marcelino Sotelo Pilar, Abra B-113 S i r : This refers to your letter dated February 13, 1973 requesting information on a query stated as follows: cdta "1. I was retired for serving more than thirty years of service in the government. The G.S.I.S. computed my annuity to be paid by the Municipality where I last served in the amount of P6,900.00 more or less. I am now receiving unfixed amount according to the availability of fund in the Municipal Treasury of Pilar, Abra. Shall I include the amount I receive occasionally from my retirement pay in my Income Tax Return if I ever file one? "2. I have a relative who returned as laborer in Hawaii and is presently receiving monthly his social security compensation check. Will his S.S.S. compensation be included in his Income Tax Return?" In reply, I have the honor to inform you as follows: 1. Pursuant to Section 25(c) of Commonwealth Act No. 186 as amended by Republic Act Nos. 660 and 728, all benefits granted by the Government Service Insurance System shall be exempt from all types of taxes. Accordingly, annuities from the GSIS are not subject to tax and need not be included or declared as part of gross income for income tax purposes. 2. There is no law declaring the monthly S.S.S. compensation received by a former laborer in Hawaii exempt from Philippine income tax. Such being the case your relative is required to file his income tax return every year if his total gross income which includes said monthly compensation received each year amounts to one thousand eight hundred pesos or more. (Section 45, N.I.R.C.) Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue