BIR Ruling No. 033-64

May 8, 1964 BIR RULING NO. 033-64 Mr. William H. Pickell 50 North Ninth St. San Jose, California S i r : In reply to your letter dated January 13, 1964 requesting information on whether or not your pension under Act No. 3050 is exempt from tax and whether or not you should continue filing your income tax returns, I have the honor to inform you as follows: cdta Commonwealth Act No. 186 which took effect on November 16, 1936 created and established the "Government Service Insurance System" in order to promote the efficiency and welfare of the employees of the Government of the Philippines. The Pension plan created under Commonwealth Act No. 186 superseded all other pension systems such as those established under Act Nos. 1638, 3050 and 3172, as amended pursuant to Section 3 of said Act which provides as follows: "SECTION 3. Establishment of Government Service Insurance System . In order to promote the efficiency and welfare of the employees of the Government of the Philippines and to replace the present pension system established in Acts Numbered Sixteen hundred and thirty-eight, Thirty hundred and fifty, and Thirty-one hundred and seventy-three, as amended, there is hereby established an institution to be known as the 'Government Service Insurance System'. "All personnel, facilities, equipment, and leases, and all records, files, correspondence, and other papers of the liquidated pension funds above referred to, as well as their respective funds, properties, and assets, including their contracts and other obligations and instruments, which under the provisions of the several acts prescribing for the liquidation of said funds are applicable to the payment of premiums on the insurance policies as herein provided, are hereby transferred to and made a part of the 'Government Service Insurance System', to be administered and disposed of the Government Service Insurance Board herein created and established subject to the provisions of this Act and of those Acts providing for the liquidation of said funds." Since the benefits you are receiving under Republic Act No. 3050 has already been absorbed and dispensed with by the GSIS, necessarily such benefits are covered by the exemption provisions of Section 28(c) of the GSIS Act, Commonwealth Act No. 186. cdti If your only income from within the Philippines is your pension under Act 3050, you are also exempt from the requirement of filing an income tax return. Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue