Taxability of voluntary contributions to PAG-IBIG, PhilHealth, SSS, and GSIS

Q: Can the excess voluntary monthly contribution to various government institutions such as PAG-IBIG, PhilHealth, SSS and GSIS be validly excluded from the gross income tax of the taxpayer? For instance, if the taxpayer contributes the maximum amount of PHP2000 to PAG-IBIG instead of the minimum PHP100 mandatory monthly contribution, is the excess PHP1900 excluded from his gross income? 

A: No. In Revenue Memorandum Circular No. 27-2011, the Bureau of Internal Revenue held that Section 32(B)(7) of the National Internal Revenue Code of 1997 only covers the mandatory/compulsory contributions of employees to SSS, GSIS, PhilHealth and PAG-IBIG. Voluntary contributions in excess of what the law allows to these institutions are not excludible from the gross income of the taxpayer and, hence, not exempt from income tax and withholding tax.