BIR Ruling [DA-245-04]

May 7, 2004 BIR RULING [DA-245-04] 24, 32 & 74; 015-94 Consul Itsuo Noto Japanese Embassy Manila Gentlemen : This refers to the letter of Mrs. Eufrecina L. Merecidio of the Defense Office on Media Affairs and Honorary Chairperson of the Philippine League of Environmentalist indorsed to this Office by Director Lourdes Z. Santiago of the Central Administration Office of the Department of Finance on February 8, 2002 requesting on behalf of Joseph Punzalan, David L. Salas and Merlita Pacheco for exemption from filing income tax returns (ITR). It is represented that Joseph Punzalan, David L. Salas and Merlita Pacheco are member volunteers engaged in launching information drive on good environmental development as news coordinator in their region; that the nature of their activities are purely socio-civic, helping our government; and that they have assignment to conduct observation tour in Japan and China at the expense of their cooperative community for the benefit of their community and the Philippine League of Environmentalist. In reply, please be informed that if the above-named member volunteers will not derive any personal income in their assignment to conduct observation tour in Japan and China, except for the necessary support for their daily maintenance from their cooperative community, they are not subject to income tax prescribed under Section 24(A) of the Tax Code of 1997 and, therefore exempt from filing the corresponding income tax returns. However, whatever support that they will receive which is not necessary for their daily maintenance shall be considered as taxable compensation under Section 32 of the Tax Code of 1997 in which case, they are subject to income tax and are required to make and file a declaration of his estimated income for the current taxable year pursuant to Section 74 of the same Code. ( BIR Ruling No. 015-94 dated January 12, 1994 ) Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group