GSIS's Request for Exemption from All Taxes, Assessments, Fees, Charges or Duties of All Kinds

May 16, 1986 BIR RULING NO. 062-86 24-a 280-82 062-86 Gentlemen : This refers to your letter dated February 20, 1986 requesting exemption from all taxes, assessments, fees, charges or duties of all kinds under P.D. No. 1146 as amended by P.D. No. 1981 otherwise known as the Revised Charter of the Government Service Insurance System (GSIS). In reply, please be informed that under Section 33 of Presidential Decree No. 1146 amending Commonwealth Act No. 186, otherwise known as the GSIS Charter, the exemption from taxes, assessments, fees and charges or duties granted thereunder to the GSIS shall continue unless specifically and expressly revoked. Under Opinion No. 126 Series of 1981 dated September 8, 1981, the Minister of Justice ruled that although Section 23 of Presidential Decree No. 1177 subjects all units of government, including government owned and controlled corporations to pay income taxes, customs duties and other taxes and fees as are imposed under revenue laws, said provision cannot reasonably be interpreted as having expressly revoked or even modified the tax exempt character of the GSIS. Hence, the failure of P.D. No. 1177 to provide for explicit revocation indicates legislative authority to retain the immunity which it had conferred upon the GSIS. Likewise, the tax exemptions of the GSIS are not withdrawn by P.D. No. 1931 because pursuant to Section 6 of P.D. No. 1981 promulgated on July 19, 1985 said tax exemptions shall not be affected by subsequent laws to the contrary, such as the provision of Presidential Decree No. 1931 and other similar laws that have been or will be enacted, unless this Section is expressly and categorically repealed by law and a provision is enacted to substitute the declared policy of exemption from any and all taxes as an essential factor for the solvency of the fund. cdta In view thereof, this Office is of the opinion and so holds that GSIS, its assets, revenues including all accruals thereto, and benefits paid shall remain exempt from all taxes, assessments, fees, charges or duties of all kinds. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner