The Bureau of Internal Revenue (BIR) has exempted the Philippine Deposit Insurance Corporation (PDIC) from paying taxes amounting to an estimated six billion pesos a year.

Instead, the PDIC's tax liabilities will be shouldered by the Department of Budget and Management (DBM) through the issuance of a so-called Special Allotment Release Order (SARO).

“The DBM shall furnish the PDIC and the revenue district office having jurisdiction over the PDIC’s principal office and the Bureau of Treasury with the copy of SARO,” Revenue Regulations No. 6-2010 stated.

Former BIR Commissioner Joel L. Tan-Torres signed the regulation which was approved by former Finance Secretary Margarito Teves last June 28.

The PDIC’s tax exemption privileges cover income, final withholding, and value-added taxes from June 1 this year up to May 31, 2014.

The insurance firm is still required, however, to pay taxes that it passes to its clients like capital gains and documentary stamp taxes. But payments of these taxes have been the subject of protests by PDIC before the Department of Justice, claiming that it is exempted from paying the same under its charter.