BIR Ruling No. 076-65

July 7, 1965 BIR RULING NO. 076-65 Mr. Pedro R. Medina 1454 P. Leoncio Sampaloc, Manila S i r : This refers to your request for a ruling on the question of whether or not sickness benefits received from the Social Security System by an employee-member are to be included in his gross income for purposes of the income tax. In reply thereto, I have the honor to quote hereunder the pertinent provisions of Section 17 of Republic Act No. 1161. "Sec. 17. Exemption from tax, legal process and lien . . . . all the contributions collected and payments of benefits made thereunder , all accruals thereto shall be exempt from any tax , assessment , fee or charge , and such payments shall not be liable to attachment, garnishment, levy, or seizure by or under any legal or equitable process whatsoever, either before or after receipt by the person or persons entitled thereto, except to pay any debt of the covered employee to the system." (Emphasis supplied) Under the same Act, a member enjoys the following tax-exempt benefits, namely; retirement, sickness, unemployment, disability and death benefits. In view of the foregoing, this Office is of the opinion and so holds that sickness benefits received by an employee-member from the Social Security System under Republic Act No. 1161 are not to be included in his gross income for purposes of the income tax. cdll Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue