Per Diems and Allowances Constitute Compensation for Services and are Therefore Taxable Income

January 9, 1992 BIR RULING NO. 011-92 28 (a) (1) 244-89 011-92 The Sangguniang Bayan Katipunan, Zamboanga del Norte Attention: Mr . Rolando O . Bayron Municipal Secretary Gentlemen : This refers to your Resolution No. 073, current series, requesting exemption from income tax of the allowances and other similar benefits of government and private officials and employees. In reply, please be informed that pursuant to Revenue Regulations No. 6-82 as amended, implementing Section 72, Chapter X, Title II of the Tax Code as amended by Batas Pambansa Blg. 135, per diems and allowances, like salaries and any other kind of remuneration which constitute "compensation for services", are taxable income. The name by which the remuneration for services is designated (i.e., salaries, wages, emoluments, allowances, fees, etc.) are immaterial in determining whether or not the remuneration for services rendered constitutes compensation income. Accordingly, your request for exemption has to be, as it is hereby denied for lack of legal basis. Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue