BIR: Pre­mium on health cards tax-free

Manila Bulletin - - National News - By JUN RAMIREZ

The Bureau of In­ter­nal Revenue (BIR) said that the pre­mium on health cards shoul­dered by em­ploy­ers is ex­empted from with­hold­ing tax.

In­di­vid­ual pre­mi­ums, not part of group in­sur­ance, paid for se­lected man­agers and su­per­vi­sors are also not sub­ject to fringe ben­e­fit tax.

The BIR is­sued the clar­i­fi­ca­tion in Revenue Mem­o­ran­dum Cir­cu­lar (RMC) No. 96-2018 that cor­rected an ear­lier RMC im­pos­ing the said taxes.

“The im­ple­men­ta­tion of the per­ti­nent pro­vi­sions of RMC 50-2018 rel­a­tive to the group health in­sur­ance pre­mi­ums are hereby deleted,” said BIR Com­mis­sioner Cae­sar R. Du­lay.

The BIR came out with a tax sched­ule to im­ple­ment cer­tain pro­vi­sions of the Tax Re­form for Ac­cel­er­a­tion and In­clu­sion (TRAIN) Law.

Some law­mak­ers ques­tioned the col­lec­tion of the taxes fol­low­ing com­plaints by many em­ploy­ees that the col­lec­tion of the said taxes was not men­tioned in the TRAIN Law.

They ex­pressed the ap­pre­hen­sion that they would ul­ti­mately shoul­der the ad­di­tional tax bur­den with em­ploy­ers de­duct­ing the in­sur­ance pay­ment from their salaries.

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