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    REVENUE MEMORANDUM CIRCULAR NO. 27-2011 Issued On July 1, 2011 Revokes

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    Jm Cruz
    The revenue memorandum circular revokes previous rulings that excluded voluntary contributions to certain institutions from an individual's gross income and exempted them from income tax. Only mandatory contributions to institutions like SSS, GSIS, PHIC and HDMF are excluded from gross income and exempt from income and withholding taxes. Voluntary contributions above what is required by law are subject to income tax. Revenue officers must apply the provisions of this circular when conducting audits and disallow any claims for exemptions on voluntary contributions.

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    REVENUE MEMORANDUM CIRCULAR NO. 27-2011 Issued On July 1, 2011 Revokes

    Uploaded by

    Jm Cruz
    107 views1 page
    The revenue memorandum circular revokes previous rulings that excluded voluntary contributions to certain institutions from an individual's gross income and exempted them from income tax. Only mandatory contributions to institutions like SSS, GSIS, PHIC and HDMF are excluded from gross income and exempt from income and withholding taxes. Voluntary contributions above what is required by law are subject to income tax. Revenue officers must apply the provisions of this circular when conducting audits and disallow any claims for exemptions on voluntary contributions.

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    digestRMC 27-2011

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    digestRMC 27-2011

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    The revenue memorandum circular revokes previous rulings that excluded voluntary contributions to certain institutions from an individual's gross income and exempted them from income tax. Only mandatory contributions to institutions like SSS, GSIS, PHIC and HDMF are excluded from gross income and exempt from income and withholding taxes. Voluntary contributions above what is required by law are subject to income tax. Revenue officers must apply the provisions of this circular when conducting audits and disallow any claims for exemptions on voluntary contributions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    107 views1 page

    REVENUE MEMORANDUM CIRCULAR NO. 27-2011 Issued On July 1, 2011 Revokes

    Uploaded by

    Jm Cruz
    The revenue memorandum circular revokes previous rulings that excluded voluntary contributions to certain institutions from an individual's gross income and exempted them from income tax. Only mandatory contributions to institutions like SSS, GSIS, PHIC and HDMF are excluded from gross income and exempt from income and withholding taxes. Voluntary contributions above what is required by law are subject to income tax. Revenue officers must apply the provisions of this circular when conducting audits and disallow any claims for exemptions on voluntary contributions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    REVENUE MEMORANDUM CIRCULAR NO.

    27-2011 issued on July 1, 2011 revokes


    BIR Ruling Nos. 002-99 (dated January 12, 1999), DA-184-04 (dated April 6, 2004), DA-569-
    04 (dated November 10, 2004) and DA-087-06 (dated March 6, 2006). Said rulings exclude
    from the gross income of the taxpayer, and hence exempt from Income Tax, contributions to
    Pag-Ibig 2, GSIS, SSS, Life Insurance, Pre-Need Plan in excess of the mandatory monthly
    contribution; GSIS Optional Insurance Premium, GSIS Educational Plan Premium, GSIS
    Memorial Plan Premium and GSIS Unlimited Optional Insurance Premium.
    Contributions referred to in Section 32(B)(7)(f) of the NIRC of 1997 cover only the
    mandatory/compulsory contributions of the concerned employees to SSS, GSIS, PHIC and
    HDMF. Thus, voluntary contributions in excess of what the law allows to these institutions are
    not excludible from the gross income of the taxpayer and hence, not exempt from Income Tax
    and Withholding Tax. Consequently, the exemption from Withholding Tax on compensation
    referred to in Section 2.78.1(B)(12) of Revenue Regulations No. 2-98 shall apply only to
    mandatory/compulsory GSIS, SSS, Medicare and Pag-ibig contributions.
    All revenue issuance inconsistent with this Circular are deemed repealed. All Revenue
    Officers conducting audit investigations shall take the provisions of this Circular into
    consideration. Accordingly, any claim for exemption for voluntary contributions shall be
    disallowed, and, where applicable, the corresponding deficiency assessment shall be made.

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