Philippine Consular Officials and Employees Not Subject to Basic and Additional Residence Taxes

January 10, 1966 BIR RULING NO. 002-66 Mr. Leopoldo J. Gonzales Revenue Attache c/o Embassy of the Philippines 9 A Palace Green London, W.8. S i r : This has reference to your letter dated March 15, 1965 stated as follows: "The collection of income tax on the return filed by one who is in the Philippines is effected either by the issuance of BIR Official Receipt, or by the imprint of an IBM machine of the amount paid on the return filed which then serves as the receipt or evidence of payment. But for income tax filers abroad who are filing their returns with the Office of the Revenue Attache, how will the income tax due on the return filed be effected under our pay-as-you-file system there being no BIR Official Receipt nor IBM machine to imprint the amount paid? "Are Filipinos who are officials and employees of our Foreign Service assigned abroad subject to the payment of the basic and additional residence taxes? In the affirmative case, how will the collection of said taxes be effected when residence tax certificates are issued as evidence of payments? In reply thereto, you are informed that, Filipinos residing abroad are required to pay their income taxes upon filing of their returns. However, since revenue attaches are not empowered to collect taxes nor provided with the facilities for collection, the return should be accompanied with the corresponding check or draft for payment. It may be informed in this connection that arrangements are being made to deputize disbursing officers of Philippine embassies and consulates as collection agents of the B.I.R. For purposes of the residence tax, Philippine Consular Officials and employees are not inhabitants of the Philippines during the time that they are staying outside thereof in pursuance of their assignment and are, therefore, not subject to the basic and additional residence taxes (BIR Ruling No. 518, Sept. 17, 1958). casia Very truly yours, (SGD.) MISAEL P. VERA Acting Commissioner of Internal Revenue