BIR Ruling [DA-040-96]

January 29, 1996 BIR RULING [DA-040-96] Sr. Ma. Providenza Escobanez, Sr. S.C. Sister of the Sacred Heart of Jesus Institute of the Sisters of the Sacred Heart of Jesus 75 Belvedere Street, Mervills Paraaque, Metro Manila Sister : This refers to your letter dated November 16, 1993 requesting on whether or not you could be exempted from the payment of tax on your income earned. It is represented that you are working only as a part time teacher with the rank of Lecturer 5, Collegiate Department at the Colegio de San Juan de Letran located at 151 Muralla Street, Intramuros, Manila since last June 1995; that you work in behalf of the Congregation, so your monthly income is given to your community every pay day; and that your Congregation has no generating income to support the needs of the ongoing formation of your aspirants, postulants and novices, so your meager income at least can help to support them. In reply, please be informed that every form of compensation for personal services is taxable, regardless of how it is earned, by whom it is paid, the label by which it is designated, the basis upon which it is determined, or the form of which it is received (Michie, Federal Tax Handbook , p. 112) In view of the foregoing, the salary you received from your work as a part time teacher is classified as compensation income subject to tax and consequently to the withholding tax. (BIR Ruling No. 28 (a) (1)/000-00/296-93 dated July 8, 1993) Such being the case, your request for exemption from the payment of tax on the income you earned is hereby denied for lack of basis. Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)