Thursday, December 1, 2011

Are PhilHealth premiums taxable? No, they are not.

Please note that the above Revenue Memorandum Circular and its subsequent amendment, specifically the portions referring to the taxability of PhilHealth premiums only apply to contributions over and above the mandatory/compulsory contributions. In the case of PhilHealth, it presently does not have any mechanism allowing payment of premiums over that prescribed by law or by PhilHealth itself. As such, no taxes are imposable on PhilHealth premiums.

Stated another way, PhilHealth premiums may only be taxable if the payments are over and above the premiums prescribed by law or by PhilHealth. Since PhilHealth only collects compulsory/mandatory premiums, these compulsory/mandatory premiums are not covered by the BIR circular and thus are not taxable.

Other references:

PhilHealth contributions not taxable -PHIC
No tax on PhilHealth premium
NO taxes on PhilHealth contributions

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