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Premium on health card tax-free –BIR


By Jun Ramirez

The Bureau of Internal Revenue (BIR) said that premium on health card paid by employer for employees is exempted from withholding tax.

BIR logo and building (Manila Bulletin file photo)

(Manila Bulletin File Photo)

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 thatcorrected 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 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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