BIR Ruling No. 003-2024

BUREAU OF INTERNAL REVENUE National Office Building REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Quezon City

Sec. 60 (B) the National Internial

amended Revenue Code of 1997, as OT- 0 03- 2 0 24

2nd Fioot Multinational Bancorporation Center MOORE-ROXAS CRUZ TAGLE & CO 6805 Ayala Avenue, Makati City JAN 1 8 2024

Attention: Norman Paul A. Turingan Partner -- Tax and Corporate Services

Gentlemen:

Philippines Provident Fund ("UPPF" for brevity), the revalidation of its tax-exempt status under BIR Ruling Nos. DA-036-04 and DA-303-98 dated January 28, 2004 and July 3, 1998, respectively This refers to your letter requesting, on behalf of your client, the University of the

fund for the benefit of its members established by the University of the Philippines; that its as well as from the contributions of the University of the Philippines; and that the earnings is invested in government-issued debt securities, loans to members, interest earning deposits, blue-chip stocks and any other speculative investments as may be allowed and provided under resigriation, separation from employment or any other analogous cases as may be approv:d by its Board of Trustees; that the source of its funds is derived from the contribution of its members the guidelines set by its Board of Trustees. and non-profit corporation with the Securities and Exchange Commission (SEC); that i: is a primary purpose is to maintain a fund in the form of benefits such as benefits for retirement. it is represented that UPPF (TIN: ) has been registered as a non-:tock

Revenue Code (Tax Code) of 1997, as amended, provides: In reply thereto, please be informed that Section 60 (B) of the National Internal

the purpose of distributing to such employees the 'earnings and principal of the iiabilities with respect to employees under the trust, for any part of the corpus or income tb be (within the taxable year or thereafter) used for, or diverted to, purposes other than for the exclusive benefit of his employees: Provided, That any amount actually distributed to any employee or distributee shall be taxable to him in the year in which so distributed to the extent that it exceeds the amount contributed by such employee or distributee." to employee's trust which forms part of a pension, stock bonus or profit-sharing plan of an employer for the benefit of some or all of his employees (1) if fund accumulated by the trust in accordance with such plan, and (2) if under the trust instrunent it is impossible, at any time prior to the satisfaction of all contributions are made to the trust by such employer, or employees, or both for "Sec. 60 (B) Exception. - The tax imposed by this Title shall not apply

or-003-2024

JAN 1 8 2024

impossible (in the taxable year and at any time thereafter prior to the satisfaction of all liabilities or diverted to, purposes other than for the exclusive benefit of the employees. the purpose of distributing to such employees the earnings and principal of the fund accumulated by the trust in accordance with such plan; and 3) under the trust agreement it is with respect to employees under the trust) for any part of the corpus or income to be used for, earnings of a retirement fund may be exempt from income tax, to wit: 1) the contributions are made to the trust by the employer, or employees, or both; 2) such contributions are made for The above-cited provision lays down the following requirements in order that the

be used to invest in various investment products subject to the context of safety, profitability and liquidity. the employees and the University of the Philippines would contribute for the trust fund. It is also provided under its purpose that the fund would be distributed to its members in cases of retirement, tesignation, separation or other cases. The utilization of its funds and income are also provided for which only allows its use for the benefits of its members and that any surplus provision found in its amended articles of incorporation and its by-laws. It is clearly stated that The earnings of UPPF fall within the purview of these requirements considering the

beneficiaries. remain exempt from income tax pursuant to Section 60 (B) of the Tax Code of 1997, as for purposes other than for the exclusive benefit of the member-employees/officials, or their deposits, yield, or any monetary benefit from deposit substitutes, trust funds, and similar arrangements, including those from government securities issued by the Bureau of Treasury. amended, and, consequently, from withholding tax. It must be emphasized, however, that in its investment activities, no part of the corpus or income of the Fund shall be used for or diverted Considering that the above conditions are met by UPPF, its earnings from bank

if, upon investigation, it is disclosed that the facts are different, then this ruling shall be considered null and void. This ruling is being issued on the basis of the foregoing facts as represented. However.

Very truly yours,

UMAGUJR

K-I-SLO tmissioner of Internal Revenue