April 3, 1959

BIR RULING NO. 159-59

The Philippine Acetylene Co.

1155 Cristobal, Paco
Manila

Gentlemen :
This has reference to your letter dated March 12, 1959, requesting
ruling on the query below: cdasia

You proposed to establish a pension plan and its members are your
employees. Your employees will contribute 5% of their annual salary to the
pension fund and an equivalent amount will be put by you. The total amount
contributed to the pension fund will be invested in the FMF shares. In the
event of retirement, death or separation from the service, the members will
accumulate for their benets the value of the FMF shares corresponding to
the amount contributed by him/her to the fund plus the dividends and the
value of the shares corresponding to the amount contributed by you subject
only to certain rules.
The question now is whether or not the contribution made by you to
the pension fund is deductible in your income tax return. In reply thereto, I
have the honor to inform you that the amount contributed by you to the
pension fund during the taxable year is deductible. However, if any portion
of the funds of the plan should revert to your possession, ownership or
control as employer by reason of the termination of the plan or dissolution,
the amount so reverted shall be returned by you as income in the taxable
year of reversion. cdt

Very truly yours,

(SGD.) JOSE ARAÑAS

Commissioner of Internal Revenue

CD Technologies Asia, Inc. © 2021 cdasiaonline.com