BIR Ruling [DA-138-06]

March 17, 2006 BIR RULING [DA-138-06] February 22, 2006 Department of Foreign Affairs Roxas Boulevard Pasay City Attention: Chief, Protocol Gentlemen : We are forwarding the herein letter dated January 27, 2006 of Director Agnette P. Peralta of the Bureau of Health Devices and Technology requesting this Office for a ruling on whether or not the salaries and allowances which she received as a short-term consultant from the World Health Organization (WHO) through Secondment Agreement are exempt from Philippine taxation. Before the Bureau can rule on her request, we need you to comment on the issue on whether or not "consultants" are included in the term "officials" of the WHO entitled to the benefits of Sections 18 and 19(b) of Article VI in relation to Section (b), Article V of the Convention on Privileges and Immunities of the United Nations, as adopted by the General Assembly on February 13, 1946, to wit: "Article V Officials Section 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; ICTcDA xxx xxx xxx" "Article VI Officials Section 18 Each specialized agency will specify the categories of officials to which the provisions of this article and of article VII shall apply. It shall communicate them to the Governments of all States parties to this Convention in respect of that agency and to the Secretary-General of the United Nations. The names of the officials included in these categories shall from time to time be made known to the above-mentioned Governments. Section 19 Officials of the specialized agencies shall: xxx xxx xxx (b) Enjoy the same exemptions from taxation in respect of the salaries and emoluments paid to them by the specialized agencies and on the same conditions as are enjoyed by officials of the United Nations; DCTSEA xxx xxx xxx" Your usual prompt action hereon is requested. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service