BIR Ruling No. 228-83

December 15, 1983 BIR RULING NO. 228-83 Gentlemen : This refers to your letter dated October 3, 1983 requesting information as to whether the contribution of the officers and enlisted personnel in the active service of the Armed Forces of the Philippines to AFP Retirement and Separation Benefits System is deductible from their gross income under the new Gross Income Tax Scheme. In reply, please be informed that the present modified gross income system is provided by Batas Pambansa Blg. 135 which took effect on January 1, 1982 and shall be applicable to income earned beginning said date. Said law repeals or modifies all other laws, decrees, orders or regulations or parts thereof which are inconsistent therewith (Sec. 16 and 17, B.P. Blg. 135). Under this system, no deduction shall be allowed from gross compensation income except the taxpayers personal and additional exemptions. (Sec. 28(a), Tax Code, as amended by B.P. Blg. 135). Such being the case, P.D. No. 361 as mended by P. D. No. 1656, effective January 1, 1980, insofar as it allows the contributions of military personnel to the Retirement and Separation Benefits System in an amount equivalent to five per cent (5%) of their monthly base pay as a deduction for individual income tax purposes has been modified by B.P. Blg. 135. In other words, said contributions of military personnel are not deductible from their gross compensation income. (BIR Ruling dated March 16, 1983). Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue