| a) The proceeds of life insurance policies paid to the
heirs or beneficiaries upon the death pf the insured, whether in a
single sum or otherwise, but if such amounts are held by the insurer
under an agreement to pay interest thereon, the interest payment shall
be included in gross income; |
|
| b) The amount received by the insured as a return
of the premiums paid by him under life insurance, endowment or any
annuity contract, either during the term or at the maturity of ther term
mentioned in the contract or upon the surrender of the contract; |
|
| c) The value of property acquired by gift, bequest,
devise or descent: Provided, however, that the income from such
property, as well as gift, bequest, devise or descent of income form any
property, in case of transfers of dividend interest, shall be included
in gross income; |
|
| d) Amounts received through accident or health
insurance, or under Workmen's Compensation Acts, as compensation for
personal injuries or sickness, plus the amounts of any damages received,
whether by suit or agreement, on account of such injuries or sickness; |
|
| e) Income of any kind to the extent required by any
treaty obligation binding upon the Government of the Philippines; |
|
| f) Retirement benefits received under the Republic
Act No. 7641 and those received by officials and employees of private
firms, whether individual or corporate, in accordance with a reasonable
private benefit plan maintained by the employer: Provided, That
the retiring official or employee has been in the service of the same
employer for at least ten (10) years and is not less than fifty(50)
years of age at the time of retirement: Provided, further, that
the benefits granted herein shall be availed of by the official or
employee only once. |
|
| g) Any amount received by an official or employee or
by his heirs from the employer as a consequence of separation of such
official or employee from the service of the employer because of death,
sickness or other physical disability or for any cause beyond the
control of the said official or employee; |
|
| h) Social security benefits, retirement gratuities,
pensions and other similar benefits received by resident or non-resident
citizens of the Philippines or aliens who come to reside permanently in
the Philippines, from foreign government agencies and other
institutions, private or public; |
|
| i) Payments of benefit due or to become due to any
person residing in the Philippines under laws of the United States
administered by the United States Veterans Administration; |
|
| j) Benefits received from or enjoyed under the Social
Security System; |
|
| k) Benefits received from the GSIS, including the
retirement gratuity received by governments officials and employees; |
|
| l) Income derived from investments in the
Philippines in loans, stocks, bonds or other domestic securities, or
from interests on deposits in banks in the Philippines by (1) foreign
governments: (2) financing institutions, owned, controlled or enjoying
refinancing from foreign governments; and (3) international or regional
financial institutions established by foreign governments; |
|
| m) Income derived from any public utility or from
the exercise of any essential governmental functions accruing to the
government of the Philippines or to any political subdivision thereof; |
|
| n) Prizes and awards made primarily in recognition of
religious, charitable, scientific, educational, artistic, literary or
civic achievement, but only if (1) the recipient was selected without
any action on his to enter the contest or proceeding; and (2) the
recipients is not required to render substantial future services as a
condition to receiving such prize or awards; |
|
| o) Prizes and awards granted to athletes in local and
international sports competitions and tournaments whether held in the
Philippines or abroad and sanctioned by their national sports
associations; |
|
| p) Gross benefits received by officials and employees of
private and public entities as thirteen month pay and other benefits,
but the total exclusion shall not exceed thirty thousand pesos
(P30,000). The ceiling of thirty thousand pesos (P30,000) may be
increased through rules and regulations issued by the Secretary of
Finance upon the recommendation of the Commissioner on Internal Revenue,
after considering, among other items, the effect on the same on the
inflation rate at the end of the taxable year. Examples of other
benefits are productivity incentivespay and Christmas bonus. |
|
| q) GSIS,SSS Medicare (PHilhealth) and Pag-ibig
contributions and union dues of individuals; |
|
| r) Gains realized from the sale oe exchange or retirement
of bonds, debentures, or other certificate of indebtedness with a
maturity of more than five (5) years; |
|
| s) Gains realized by the investor upon redemption of
shares of stocks of a mutual fund company. |
|
*Note: The maximum deductible from exclusions is P30,000. In the event
that the total value exceeds P30,000, only P30,000 will be deducted.