RMC No. 43-2011: Circularizes Section 19 of RA No. 9679 known as the “Human Development Mutual Fund Law of 2009”

Summary

RMC No. 43-2011 circularizes Section 19 of RA No. 9679, the Home Development Mutual Fund Law of 2009, on the Pag-IBIG Fund’s exemption from tax, legal process and lien.

Key points

1. Exemption of the Fund. Section 19 exempts the Fund and its assets, contributions, accruals and investment income, supplies, equipment, papers and documents from any tax, assessment, fee, charge, or customs or import duty. Any tax assessment against the Fund is null and void.
2. Benefit payments. Benefit payments made by the Pag-IBIG Fund are exempt from all taxes, fees or charges and are not liable to attachment, garnishment, levy or seizure, before or after receipt, except to pay any debt of the member to the Fund.
3. Tax measures. No tax measure applies to the Fund unless it expressly revokes the State policy in Section 2 granting the exemption.
4. Documentary Stamp Tax. Because the Fund is exempt from the DST under Title VII of the NIRC of 1997, as amended, the other party to the taxable document who is not exempt is directly liable to pay the DST.

Who is affected

• Pag-IBIG Fund
• Parties to taxable documents with the Fund

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.