BIR Ruling No. 216-83

December 7, 1983 BIR RULING NO. 216-83 Gentlemen : This refers to your letter dated November 18, 1983 requesting that the Committee of Trustees entrusted with the administration of the GSIS Provident Fund be allowed to declare cash dividends in favor of the employee-members pending submission to this Office of the Fund's application for tax-exemption. In said letter, it is represented that the purpose for the declaration of the cash dividends is to extend financial assistance to the employees in view of the present economic difficulties. In reply, please be informed that your request is hereby granted. These cash dividend payments from the GSIS Provident Fund may not effect its future qualification for tax-exemption, determination of which shall depend on the Fund's compliance with the requirements the Section 56(b) of the Tax Code as amended. Such cash dividend payments shall, however, be subject to the withholding tax on wages and are taxable to the recipient employee-member to the extent of the entire amount thereof in the year so distributed at the rates prescribed by Section 21(a) in relation to Section 91 of the Tax Code as amended by B.P. Blg. 135 and implemented by Revenue Regulations No. 6-82. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue