Bill Type
Congress Name
Long Title
AN ACT AMENDING SECTION TWENTY-SEVEN OF THE TAX REFORM ACT OF 1997 AND HEREBY IMPOSING A TAX ON INTEREST INCOME AND CAPITAL GAINS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS) AND SOCIAL SECURITY SYSTEM (SSS)
Date filed
July 2, 2001
Scope
Urgent Bill
No
Legislative History
| House Bill/Resolution NO. House Bill No. 293, 12th Congress of the Republic |
| FULL TITLE : AN ACT AMENDING SECTION TWENTY-SEVEN OF THE TAX REFORM ACT OF 1997 AND HEREBY IMPOSING A TAX ON INTEREST INCOME AND CAPITAL GAINS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS) AND SOCIAL SECURITY SYSTEM (SSS) |
| ABSTRACT : Rationale: The incomes of the GSIS and the SSS, both from contributions and investments are EXEMPT from all taxes. The tax exemption of the SSS and the GSIS give them an advantage over other investment houses and pension funds when they participatein the capital market. The tax exemption gives them higher profits in their investments and this allows them a wider room in making deals. To level the playing field, this bill proposes to tax the investment of the SSS and GSIS. They will be subject to taxes such as capital gains tax and stock transaction tax, 20% final tax on deposits just like any other corporation. |
| PRINCIPAL AUTHOR/S : TEVES, HERMINIO G. |
| DATE FILED : 2001-07-02 |
| SIGNIFICANCE: NATIONAL |
| CO-AUTHORS : |
| 1. Echiverri |
| CO-AUTHORS (Journal Entries) : |
| 1. Syjuco (041 ) |
| ADMINISTRATION BILL? No |
| URGENT BILL? No |
| ACTIONS TAKEN BY THE COMMITTEE ON RULES |
| REFERRAL TO THE COMMITTEE ON WAYS AND MEANS ON 2001-07-24 |
Abstract
Rationale: The incomes of the GSIS and the SSS, both from contributions and investments are EXEMPT from all taxes. The tax exemption of the SSS and the GSIS give them an advantage over other investment houses and pension funds when they participatein the capital market. The tax exemption gives them higher profits in their investments and this allows them a wider room in making deals. To level the playing field, this bill proposes to tax the investment of the SSS and GSIS. They will be subject to taxes such as capital gains tax and stock transaction tax, 20% final tax on deposits just like any other corporation.
Disclaimer
Note: Legislative history and other information accessed from Congress Legis. Information as of April 20, 2022.