BIR Ruling

March 5, 1969 Mr. Luis B. Ladonga (Presidential Arm on Community Development) Ambassador Building 1817 Espaa cor. Prudencio Sampaloc, Manila S i r : This refers to your letter dated December 6, 1968 requesting a ruling as to whether or not the salaries and emoluments received by you from the United Nations by reason of your employment in the Government of Panama as Advisor on community development, social welfare, and labor are exempt from the Philippine income tax law. lexlib In reply, I have the honor to wrote 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 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" was adopted by the General Assembly on February 13, 1946, and shall be 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 Sec. 18, Art. V of the Convention does not cover all officials of the United Nations; Sec. 17 of the same article is specific as to what officials are entitled to exemption. It is essential that the name of the official be included in the list of officials which shall from time to time be communicated and made known to the Governments of Member-Nations. Accordingly, your name having been included in the list of officials of the U.N. accorded the privileges and immunities, under item 2, Page 361, List of Officials of the United Nations 1967, New York, 1968 with Catalogue No. ST/SG/LO/67, as certified in a letter dated February 17, 1969 by Lourdes J. Angulo, Information Assistant of the UN Information Centre for the Philippines, this Office believes and so holds that the emoluments and salaries received by you from November 15, 1963 to February 29, 1968, from the U.N. by reason of your employment in the Government of Panama as Advisor on community development, social welfare and labor, are exempt from the Philippine income tax. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue