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
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;
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 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, 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 -

employers not having more than

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

"2. Upon issuance of an amendatory certificate of

qualification -
employers not having more than
"(a)
50
employees P200
employers having more than 50
"(b)
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 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, 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."

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 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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