Publishing Memorandum Circular No. 142 of the Government Service Insurance System dated August 18, 1969

December 17, 1969 REVENUE MEMORANDUM CIRCULAR NO. 03-70 SUBJECT : Publishing Memorandum Circular No. 142 of the Government Service Insurance System dated August 18, 1969 TO : All Internal Revenue Officers and Employees and Others Concerned For the information and guidance of the officers and employees of this Bureau, there is quoted hereunder Memorandum Circular No. 142 of the General Manager of Government Service Insurance System, which is self-explanatory: "Memorandum Circular No. 142 "TO : HEADS OF DEPARTMENTS, CHIEF OF BUREAUS, OFFICES, AND GOVERNMENT AND GOVERNMENT-OWNED CONTROLLED CORPORATIONS, THE CHIEF OF STAFF, AFP, PROVINCIAL GOVERNORS, CITY AND MUNICIPAL MAYORS, PROVINCIAL, CITY AND MUNICIPAL TREASURERS, ACCOUNTING AND DISBURSING OFFICERS AND OTHERS CONCERNED "SUBJECT : GRANTING OF INVESTMENT INCENTIVES LOANS "Quoted in full hereunder for the information of all concerned is Section 12 of Republic Act No. 5186, otherwise known as the Investment Incentives Act: "Section 12. Loans for Investment . The Government Service Insurance System and the Social Security System shall extend to their respective members five-year loans at a rate of interest not to exceed six per cent per annum for the purchase of shares of stock in any registered enterprise: Provided , That (1) the shares so purchased shall be deposited in escrow with the lending institution for the full five-year term of the loan; partial releases of the shares shall, however, be allowed to the extent of the payment of amortization made therefor; (2) such loans shall be amortized in sixty equal monthly installments which shall be withheld by the employer from the monthly salary of the employee concerned and remitted to the lending institution by the employer; but any and all dividends earned shall be delivered to the employee; and (3) the maximum loan available to each employee in any one calendar year shall not exceed fifty per centum of the employee's annual gross income; Provided, further, That the total investment of the government financial institution concerned, consisting of its direct investment in the registered enterprise and the loans it has extended to its respective members which have been invested by the members in a registered enterprise shall not be more than forty-nine per cent (49%) of the total capitalization of the registered enterprise in which the investments have been made. "Pursuant to the foregoing effective this date, the Government Service Insurance System shall grant Investment Incentives Loans to all its members who (1) are permanent employees; (2) are holders of regular insurance policies of the System and (3) have been insured with the System for at least ten (10) years during which time they have been paying life and retirement premiums regularly; and subject to such other rules and regulations that may be adopted by the System for the purpose. "This loans shall not be granted to members who have outstanding five-month salary loans and real estate mortgage loans with the System. "It is requested that his information be fully disseminated to all officials and employees of that office so that they may be guided accordingly. aisa dc "(SGD.) B.M. DEL ROSARIO" "General Manager" MISAEL P. VERA Commissioner of Internal Revenue