Exemption from Withholding Tax of GSIS, SSS, Medicare and Pag-ibig Contributions, and Union Dues of Employees
BIR Ruling No. 059-00 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Nov 8, 2000
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November 8, 2000 BIR RULING NO. 059-00 RR #2-98 000-00 Mr. Neptaly C. Taon Provincial Accountant Virac, Catanduanes S i r : This refers to your letter dated November 3, 1998 requesting for a ruling as to whether or not GSIS life and retirement premiums, Medicare premiums and Pag-ibig premiums/contributions are items exempted from withholding tax, thus, after deducting the said items, the remaining amount will be the amount of compensation subject to tax. In reply, please be informed that under Section 2.78.1 (B)(11) of Revenue Regulations No. 2-98 implementing Republic Act No. 8424 relative to the withholding of income tax on compensation, among others, GSIS, SSS, Medicare and Pag-ibig contributions, and union dues of individual, employees are exempted from the requirement of withholding tax on compensation, hence, the basic salary to be subjected to withholding tax on compensation should be net of the said deductions (GSIS life and retirement premium, Medicare premium and Pag-ibig premium/contributions). Very truly yours, (SGD.) DAKILA B. FONACIER Commissioner of Internal Revenue
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