Non-deductibility of the Contributions Made by Employees to the SSS

December 12, 1958 BIR RULING NO. 708-58 Fleming & Williamson P.O. Box 214 Manila Gentlemen : In reply to your letter requesting information as to whether or not contributions made by employees to the Social Security System pursuant to the provisions of the Social Security Act of 1954, as amended by Republic Act No. 1792, are deductible from the gross income of the employees, I have the honor to inform you that the said contributions are not deductible. Item No. 2, Purview of Exemption, General Circular No. V-261 which reads: "Contributions collected and payment of benefits made under the Act, and accruals thereto are exempt from the income and additional residence taxes, and any other tax." simply means that the System is not subject to tax for the contributions collected by it, nor are the beneficiaries subject to tax for all the benefits and accruals received from the System. cdpr Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue