BIR Ruling

July 7, 1969 MEMORANDUM FOR: The Asst. Revenue Operations Head (Assessment) This refers to your Memorandum dated March 5, 1969 wherein you requested answers to the following questions: 1. Under the Army Appropriation Act, enlisted men are given uniform and subsistence allowances. llcd Question Are those are to be considered taxable income and at the same time deductible as expenses? 2. Officers received so-called foggy or longevity pay. Question Are these taxable income? 3. Officers are allowed quarters' allowances. These allowances are given to those who live outside the military compound. Questions Are these allowances taxable income and at the same time deductible expenses? 4. Officers are not given allowance for uniforms but they are required to be in uniform while on official duty. Therefore they provide themselves with uniforms out of their private funds. LibLex Question Are there expenses for uniforms deductible from their gross income? Uniform and subsistence allowances of enlisted men as well as quarters allowances of officers are considered part of their gross income and should be included in their income tax returns. However, expenses actually incurred by them for subsistence as duly established, are allowable as items of deductions. Foggy or longevity pay of members of the Armed Forces of the Philippines are taxable income and should be included in their income tax returns. Officers of the Armed Forces who are required to be in their official uniform while on duty and if no uniform allowance is provided therefor, any amount incurred for the acquisition of such uniform is not deductible from their gross income. (SGD.) MISAEL P. VERA Commissioner of Internal Revenue