BIR Ruling

January 27, 1975 Westbound Travel Center, Inc. Hotel Filipinas, Roxas Boulevard Manila Attention: Mr . Amos Henry Sales Representative Gentlemen : This refers to your letter dated January 21, 1975 relative to the case of U.S. military servicemen, their dependent wives and children, school teachers on Department of Defense contracts, and civilians on commercial contract with the Department of Defense, who, while on military assignment in the Philippines, go on excursion on tour for a short period of time from 2 days to 3 weeks, to Hongkong and other southern Asian countries and returning to the Philippines to complete their tour of duty. But everytime they take this short trips they are required to secure tax clearance like when they are leaving the Philippines permanently. This you consider unfair because after this short trips they return anyway to the Philippines. You now request that they be exempted from the requirement of obtaining tax clearance for the short trips provided that they can show proof of returning to the Philippines. In reply thereto, I have the honor to inform you that under the foregoing facts, only the U.S. military servicemen and school teachers on Department of Defense contracts, if they are considered U.S. Government personnel, are exempt from the requirement of securing tax clearance. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5