RMC No. 108-2024 — Clarifying the taxability of Microinsurance Mutual Benefit Associations in respect to income received by them

Republic of the Philippines

BUREAU OF INTERNAL REVENUE Department of Finance

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SUBJECT Associations in Respect to Income Received by Them Clarifying the Taxability of Microinsurance Mutual Benefit

TO All Internal Revenue Officers and Others Concerned

Associations (Mi-MBAs). Internal Revenue Code (Tax Code) of 1997, as amended, to Microinsurance Mutual Benefit This Circular is being issued to clarify the application of Section 30(C) of the National

to income received by them. other benefits exclusively to the members of such society, order, or association, or nonstock order or association operating for the exclusive benefit of the members, such as a fraternal organization operating under the lodge system, or mutual aid association or a nonstock corporation organized by employees providing for the payment of life, sickness, accident, or corporation or their dependents, shall not be taxed under Title II of the same Code in respect Section 30(C) of the Tax Code of 1997, as amended, provides that a beneficiary society.

Republic Act No. 10607, otherwise known as "The Insurance Code". exempt mutual aid associations. The description provided under the RMO corresponds to the definition of mutual benefit associations, including Mi-MBAs, as outlined in Section 403 of which provides for the nature, characteristics, corporate purposes, and actual operations of tax- In relation thereto, Revenue Memorandum Order (RMO) No. 38-2019 was issued.

Certificate of Tax Exemption from the Bureau of Internal Revenue, shall not be taxed under Title II of the Tax Code of 1997, as amended, on the income received by them as such. actually operate as such pursuant to the provisions of RMO No. 38-2019, and secure a valid Therefore, it is hereby clarified that Mi-MBAs, as long as they are registered and

give this Circular as wide publicity as possible. All internal revenue officials, employees, and others concerned are hereby enjoined to

K-1-SLO Commissioner of Internal Revenue ROMEO D. LUMAGUI, JR. O

HCAT RECORDS MANAGEMENT DIVISION BUREAU OF INTERNAL REVENUE iaDmin unIt SEP 18 2024 TIME:1:20 (por DPO No.CB MemO-AF. 30,3 ) Date ot signing : 0il/i- MARIDUR\V.ROBARIO Deputy Coiwnanioner Operatcno Group Officer-in chargs 00000960

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