Deductibility of Residence Tax When Taxpayer Adopts the Accrual Method of Accounting

January 6, 1967 BIR RULING NO. 004-67 Mr. Robert Yu 130 Echague Street Quiapo, Manila S i r : This refers to your letter dated September 30, 1966 requesting information relative to the deductibility of Residence Tax B when the taxpayer has adopted the accrual method of accounting. In reply, I have the honor to inform you that subject to the limitations and exceptions provided in Section 30(c) of the Tax Code, taxes paid or accrued (depending on whether the taxpayer's method of accounting is on cash or accrual basis ) within the taxable year are deductible from gross income. Hence, the Residence tax that accrued and became payable in 1966 and which as a matter of fact, was paid by you in March, 1966, is deductible from your 1966 gross income. cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue