BIR Ruling

July 14, 1976 Manila Public Schools Supervisors' Association Division of City Schools Manila Attention: Mrs . Maura G . Tangco President Gentlemen : This refers to your request for a ruling on a query stated as follows: "We have the honor to request for a ruling on whether our transportation reimbursement is taxable or not. As teachers and supervisors, we usually travel outside our official station in the performance of our official functions. For actual expenses incurred in said travels, we are correspondingly reimbursed by the City of Manila. In reply thereto, I have the honor to inform you that government employees, like the teachers and supervisors adverted to in your inquiry, need not report in their income tax returns the amount actually spent by them for traveling expenses while in the performance of their official duties outside their official stations for which expenses, they are correspondingly reimbursed by the City of Manila, provided that the total amount of reimbursement is equal to such expenses. However, if the reimbursement exceeds the actual expenses or the excess is not returned to the City of Manila, the same constitute taxable income. cd Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3