October 28, 1982

REVENUE REGULATIONS NO. 01-83

SUBJECT : Amendments to Revenue Regulations No. 1-68 or the

PRIVATE RETIREMENT BENEFIT PLAN
REGULATIONS.

TO : All Internal Revenue Officers and Others Concerned.

Pursuant to Section 326 in relation to Section 4, both of the National

Internal Revenue Code, as amended, the following regulations, amending
Revenue Regulations No. 1-68, are hereby promulgated. acd

SECTION 1. Section 6 of Revenue Regulations No. 1-68 hereby

amended to read as follows:

"Sec. 6. Determination of qualification. (A) Issuance of

certificate of qualification. — Before availing of the privileges afforded by
pension, gratuity, profit-sharing, or stock bonus plans, a certificate must be
secured by the employer to the effect that the qualification of the plan for
tax-exemption has been determined. In securing such certification, the
employer must file a written application therefor with the Commissioner of
Internal Revenue, attaching thereto the following documents: acd

"(1) In the case of a trusteed Plan. -

"(a) B.I.R. Form No. 17.60 duly accomplished;

"(b) A copy of the written program constituting the Plan;

"(c) A copy of the Trust Agreement executed by and

between the employer as trustor and the trustee/trustees of the
employees retirement trust fund, duly signed by the parties to the trust
and acceptance by the trustee/trustees indicated;

"(d) Statement of Actuarial Assumption or Valuation duly

certified to by an independent consulting actuary who must be a
Fellow of the Actuarial Society of the Philippines (in the case of a
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 fixed-benefit type of Plan); and

"(e) Such other documents which the Commissioner may

consider necessary in the final determination of the qualification of the
Plan for tax-exemption under Republic Act No. 4917 (now
Section 29(c)(7)(A) ) of the Tax Code and these regulations.

(2) In the case of a non-trusteed/insured Plan. —

"(a) B.I. R. Form No. 17.60 duly accomplished;

"(b) A copy of the written program constituting the Plan;

"(c) A copy of the Deposit Administration Contract

Deferred Annuity Contract executed by and between the employer or
the insured or policyholder and the Insurance Company as the insurer;
and

"(d) Such other documents which the Commissioner may

consider necessary in the final determination of the publication of the
Plan for tax-exemption. acd

(3) In the case of Multi-employer Plans. —

"The same documentation requirements as in paragraph (A)(1)

or paragraph (A)(2), as the case may be, this Section should be
submitted for each of the participating employers together with the
Participating Agreement.

"Upon receipt of the application, the same together with the

supporting documents shall be referred to the Government and Tax
Exempt Corporation Division for field investigation and verification of
the employee's trust's (Retirement Plan) compliance with the
requirements provided for by Section 29(c)(7)(A) of the Tax Code and
these regulations, after which the Commissioner of Internal Revenue
shall decide whether or not the plan is so qualified. If the
Commissioner decides that the plan is qualified, he shall issue a
certificate of qualification, upon payment of the corresponding fee
prescribed in paragraph (B) of this Section. However, if he decides that
the Plan is not qualified, he shall inform the employer of his decision
and the reasons supporting the same. cd i

"During the period that the Plan is in operation, amendments

thereto may be introduced. Such amendments should also be submitted
for certification that the amendment or amendments do not affect the
qualification of the Plan. If found to be beneficial to the
employee-members of the Plan, an amendatory certification of
qualification shall be issued by the Commissioner of Internal Revenue,
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 upon payment of the corresponding fee prescribed in paragraph (B) of
this section.

"(B) Fees to be paid by the employer:

"1. Upon issuance of the certificate of qualification -

"(a) employers not having more than 50
employers P250
"(b) employers having more than 50 but
not over 100 employees P350
"(c) employers having more than 100
employees P500

"2. Upon issuance of an amendatory certificate of

qualification -
"(a) employers not having more than 50
employees P200
"(b) employers having more than 50 but
not over 100 employees P300
"(c) employers having more than 100
employees P450

"Provided, however, that employers not having more than five

(5) employees shall be exempt from the fees prescribed by these
regulations. cd

"Said fees shall accrue to the General Fund and shall be

deposited with the National Treasury."

SECTION 2. Revenue Regulations No. 1-68 is hereby amended by

adding a new section to be known as Section 7, and to read as follows:

"Sec. 7. Filing and examination of annual information return.

— When a certificate of qualification is issued by the Commissioner of
Internal Revenue, the employees' (trusteed Retirement Plan) trust need not
thereafter make and file a return of its income. However, the trustees or
fiduciaries of qualified (trusteed) Retirement Plan should file on or before
April 15 of each year, with the Government and Tax Exemption Corporation
Division of the Bureau of Internal Revenue, an annual information return
(B.I.R. Form No. ___ ) under oath, stating its gross income or total amount
in the trust fund; total employer's contributions for past and current service
liabilities; total employees' contributions, if any; earnings/yield from
investments of the fund, nature of investment/investments, name and address
of Bank or Investment House, expenses incurred; and payments of benefits
under the Plan during the preceding year, together with a certification
showing whether or not there is any amendment or modification in the Plan
rules and regulations, Trust Agreement Actuarial valuation or assumptions,

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 funding, Collective Bargaining Agreement, if any, manner of operation and
activities as well as sources and disposition of the trust fund.

"The annual information return shall be examined by examiner, of

the Government and Tax Exempt Corporation Division and the report of
examination shall be processed as in the case of a regular return."

SECTION 3. Section 7 of the Revenue Regulations No. 1-68

hereby renumbered as Section 8 and amended to read as follows: cdt

"Sec. 8. Coverage of the exemption. — Republic Act No. 4917

(now Section 29(c)(7)(A) of the Tax Code) took effect on June 17, 1967.
Employees retiring after this date under a benefit plan established prior to
said date but which qualifies as herein provided shall be entitled to
exemption. Such plan must, however, be submitted for determination of its
qualification as provided for in Section 6 of these regulations.

"Exemption shall also apply to employees involuntarily separated

from the services of their employers after said date.

"Tax-exemption privileges under a qualified Retirement Plan shall

retroact to the date of effectivity of the Plan."

SECTION 4. Revenue Regulations No. 1-68 is hereby amended by

adding a new section to be known as Section 9, to read as follows:

"Sec. 9. Penalty Provision. — By virtue of Section 337 of

the National Internal Revenue Code, any person required to make an annual
information return or to supply information required under these regulations
who fails to make such return or to supply such information at the time
specified therein shall be liable to a fine of not more than three hundred
pesos or imprisonment for not more than six months, or both."

SECTION 5. Effectivity. — These regulations shall take effect thirty

(30) days after their publication in newspapers of general circulation in the
Philippines. cdasia

(SGD.) CESAR VIRATA

Minister of Finance

Recommended by:

(SGD.) RUBEN B. ANCHETA

Acting Commissioner

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Copyright 2017 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Taxation Encyclopedia 2016 5