Excess contributions___________________________
►
This Circular is issued to set the effectivity
and the application of the revocation of BIR Ruling Nos. 002-99, DA-184-04,
DA-569-04 and DA-087-06 in relation to the issuance of RMC No. 27-2011.
► Amends
the fourth paragraph of RMC No. 27-11 to read as follows:
"Therefore,
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, this Office holds that voluntary contributions
to these institutions in excess of the amount considered
compulsory 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 (RR) No. 2-98 shall apply only to
mandatory/compulsory SSS, GSIS, Medicare and Pag-ibig contributions".
RMC No. 53-2011 dated November 4, 2011
RMC No. 53-2011 dated November 4, 2011
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