HOUSE BILL NO.

2612

“AN ACT EXEMPTING CONTRIBUTIONS FOR THE GOVERNMENT SERVICE

INSURANCE SYSTEM (GSIS), SOCIAL SECURITY SYSTEM (SSS), THE
PHILIPPINE HEALTH INSURANCE (PHILHEALTH) CORPORATION, AND THE
PAG-IBIG FUND FROM TAXATION, AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 8424 OR THE NATIONAL INTERNAL REVENUE CODE.”
AMENDMENT OF SECTION 32 (B) REPUBLIC ACT
NO.8424
Exclusion from the Gross Income- The following items shall not be included
from gross income and shall be exempt from taxation under this title.
xxxx
(7) Miscellaneous Items ----
xxxx
(f) GSIS, SSS, [Medicare], PhilHealth, PAG-IBIG and
other contributions---GSIS, SSS, [Medicare], PhilHealth, PAG-IBIG
contributions, REGARDLESS IF MANDATORY OR VOLUNTARY, and union
dues of individuals.
GOVERNMENT SERVICE INSURANCE SYSTEM
(GSIS)
GOVERNMENT SERVICE INSURANCE SYSTEM
(GSIS)

The Government Service Insurance System (Filipino: Paseguruhan ng mga

Naglilingkod sa Pamahalaan, abbreviated as GSIS) is a government
owned and controlled corporation (GOCC) of the Philippines. Created by
Commonwealth Act No. 186 passed on November 14, 1936, the GSIS is
mandated to provide and administer the following social security
benefits for government employees: compulsory life insurance, optional
life insurance, retirement benefits, disability benefits for work-related
contingencies and death benefits.
GOVERNMENT SERVICE INSURANCE SYSTEM
(GSIS)
the GSIS is entrusted with the administration of the General Insurance Fund
by virtue of RA656 of the Property Insurance Law. It provides insurance
coverage to assets and properties which have government insurable
interests.
The principal benefit package of the GSIS consists of compulsory and
optional life insurance, retirement, separation and employee's
compensation.
Active GSIS members are entitled to the following loan privileges: salary,
policy, emergency and housing loans.
SOCIAL SECURITY SYSTEM (SSS)
SOCIAL SECURITY SYSTEM (SSS)

The Philippine Social Security System (Filipino: Paseguruhan ng

Kapanatagang Panlipunan, or SSS) is a social insurance program for
workers in the Philippines. It is a government agency that provides
retirement and health benefits to all enrolled employees in the
Philippines . Members of the SSS can also make 'salary' or 'calamity'
loans. Salary loans depend on the monthly salary of the employee.
Calamity loans are for such times when there is a calamity that has been
so declared by the government, in the area where the SSS member
lives, such as flooding, earthquake and natural disasters.
THE HOME DEVELOPMENT MUTUAL FUND
(HDMF) OR PAG-ASA FUND
 THE HOME DEVELOPMENT MUTUAL FUND
(HDMF) OR PAG-IBIG FUND

The Home Development Mutual Fund (HDMF), more popularly known as the
Pag-IBIG Fund, was established to provide a national savings program
and affordable shelter financing for the Filipino worker. The Fund offers
its members short-term loans and access to housing programs. It is
mandatory for all SSS- and GSIS-covered employees; uniformed
members of the AFP, BFP, BJMP and PNP; as well as Filipinos employed
by foreign-based employers.
THE PHILIPPINE HEALTH INSURANCE
CORPORATION (PHILHEALTH)
 THE PHILIPPINE HEALTH INSURANCE
CORPORATION (PHILHEALTH)

The Philippine Health Insurance Corporation (PhilHealth) was created in

1995 to create a universal health coverage for the Philippines,
government-owned and government-controlled corporation (GOCC) of
the Philippines, and is attached to the Department of Health. It states its
goal as insuring a sustainable national health insurance program for all.
In 2010, it claimed to have achieved "universal" coverage with 86% of
the population, although the 2008 National Demographic Health Survey
showed that only 38 percent of respondents were aware of at least one
household member being enrolled in PhilHealth.
NATURE OF THE BILL
What is a gross income ?
General Definition. - Except when otherwise provided in this Title, gross income means all income
derived from whatever source, including (but not limited to) the following items:
"(1) Compensation for services in whatever form paid, including, but not limited to fees, salaries,
wages, commissions, and similar items;
"(2) Gross income derived from the conduct of trade or business or the exercise of a profession;
"(3) Gains derived from dealings in property;
"(4) Interests;
"(5) Rents;
"(6) Royalties;
"(7) Dividends;
"(8) Annuities;
"(9) Prizes and winnings;
"(10) Pensions; and
"(11) Partner's distributive share from the net income of the general professional partnership