Government Service Insurance System (GSIS)

September 23, 2019 FIRB RESOLUTION NO. 007-19 SUBJECT MATTER : Government Service Insurance System (GSIS) WHEREAS, the Government Service Insurance System (GSIS) is a government instrumentality primarily mandated to provide a defined benefit pension fund for employees in the public sector to insure against occurrence from certain contingencies; aScITE WHEREAS, the GSIS, as a state insurance institution, is also mandated to insure all government properties and assets from any insurable interests; WHEREAS, in strengthening the viability of the fund, the State declared it as a policy to maintain and preserve at all times the actuarial solvency of the GSIS; WHEREAS, Section 39 of Republic Act (RA) 8291 exempts GSIS from all taxes, assessments and levies arising from acquired assets, revenues, and benefits paid; WHEREAS, Section 86 of RA 10963 (Tax Reform for Acceleration and Inclusion [TRAIN] Act, December 19, 2017) provides for the repeal of value-added tax (VAT) exemption of various government-owned and/or -controlled corporations (GOCCs) including those of the GSIS, state universities and colleges (SUCs), and other government instrumentalities (GIs); WHEREAS, under the same law, the repealed VAT exemption of the concerned GOCCs, SUCs and other GIs is replaced by a targeted tax subsidy being administered by the Fiscal Incentives Review Board (FIRB); WHEREAS, VAT obligations of GOCCs, SUCs, and other GIs shall be chargeable to the Tax Expenditure Fund (TEF) provided for under the 2019 General Appropriations Act (GAA) or RA No. 11260; WHEREAS, the GSIS funds are special funds which is essentially used for purposes of benefiting the public sector employees and payment of the VAT would shorten the actuarial life of the GSIS; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to grant tax subsidy to the GSIS in the amount of ONE BILLION PESOS (PhP1,000,000,000.00) only , for its VAT obligations for the calendar year 2019. The corresponding Certificate of Entitlement to Subsidy (CES) shall be issued upon the submission by the GSIS to the FIRB of its actual tax liability based on BIR billings/assessments/tax returns: Provided , that such availment shall be in accordance with the terms and conditions of Section 15 (c) of RA 11260 or the 2019 GAA, subject to the availability of funds therefor, pursuant to the terms and conditions of the Rules and Regulations to Implement the Subsidy Provision under Executive Order (EO) 93. (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) CEFERINO S. RODOLFO Undersecretary Department of Trade and Industry (SGD.) ROSEMARIE G. EDILLON Undersecretary National Economic and Development Authority (SGD.) MARISSA O. CABREROS Deputy Commissioner Bureau of Internal Revenue (SGD.) REY LEONARDO B. GUERRERO Commissioner Bureau of Customs (SGD.) DONALDO M. BOO OIC-Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) ANTONETTE C. TIONKO Undersecretary of Finance Presiding Officer-FIRB