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No Taxes on PhilHealth ContributionsNovember 18, 2011

NO taxes will be imposed on the premium contributions of members of the Philippine Health Insurance Corporation (PhilHealth).

PhilHealth President and CEO Dr. Eduardo P. Banzon today issued this statement to assuage members in view of a recent issuance from the Bureau of Internal Revenue (BIR) which prescribed the imposition of taxes on voluntary contributions to social security agencies including PhilHealth, in excess to what the law allows.

"Our employed members' contributions are based on a salary schedule. The latest range of contribution rates we prescribed took effect January 1, 2007 and until now, this contribution schedule is being followed," Banzon said.

At the same time, individually paying members whose average monthly income over the last 12 months is P25,000 and below pay P300 per quarter, while those earning above P25,000.00 pay P600 per quarter. "This two-tiered premium rate for IPMs took effect in October last year," he said.

Clarifying recent news reports quoting the BIR that an employee may pay an additional P1,000 per month to PhilHealth as voluntary contributions, the PhilHealth Chief said that "...at present, we do not have a mechanism that will allow members to voluntarily pay premiums over and above the premium ceilings that we have prescribed, in anticipation of being entitled to higher benefits. This is how social solidarity works and this remains among the pillars on which the NHIP stands," the PhilHealth Chief said.

"Malinaw po ang nasa patakaran ng BIR, na ang papatawan lamang ng buwis ay ang mga boluntaryong kontribusyon sa mga social security agencies na higit pa sa naitakda ng batas o mga alituntunin ng nasabing mga ahensya. Dahil ang PhilHealth po ay wala namang optional o boluntaryong dagdag premium contribution na higit sa kasalukuyang prima, walang papatawan ng buwis," Banzon emphasized. (END)



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