BIR Ruling

June 4, 1969 Mrs. Maria M. Mariano 309 Taylo St., Pasay City M a d a m : This refers to your letter of the 3rd instant requesting a certification to the effect that your daughter, Josefina, is exempt from the payment of income tax on her salary as clerk-stenographer of the Human Rights Department, United Nations, New York, U.S.A. aisadc In reply, I have the honor to quote hereunder the pertinent provisions of the "Convention On The Privileges and Immunities of the United Nations." "Sec. 18. Officials of the United Nations shall: xxx xxx xxx "(b) Be exempt from taxation on the salaries and emoluments paid to them by the United Nations"; "Sec. 17. The Secretary-General will specify the categories of officials to which the provisions of this Article and Article VII shall apply. He shall submit these categories to the General Assembly. Thereafter these categories shall be communicated to the Governments of all members. The names of the officials included in these categories shall from time to time be made known to the Governments of Members." The "Convention On the Privileges and Immunities of the United Nations" (hereinafter referred to as the Convention) was adopted by the General Assembly on February 13, 1946, and is binding upon the Republic of the Philippines as one of the members of the United Nations. (Sec. 29(b) (6), National Internal Revenue Code). The exemption granted by Section 18, Article V of the Convention does not cover all employees of the United Nations. Section 17 of the same article is specific as to what employees are entitled to the exemption. Only officials of the United Nations whose names are included in the list of officials which shall from time to time be communicated and made known to the Governments of Member-Nations are exempt from the payment of income tax. In view thereof, and considering that your daughter is not one of those officials of the United Nations contemplated under the aforequoted provisions of the Convention, this Office is of the opinion and so holds that her salary during the period of her employment as clerk-stenographer in the U.N. Secretariat, is subject to income tax under Section 21 of the National Internal Revenue Code. cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue