Whether Reimbursement of Traveling Expenses Incurred by Quarantine Personnel (Assigned at Different Seaports and Airports) in the Performance of their Agents Outside Regular Office Working Hours are Also Subject to 15% Creditable Withholding Tax Imposed under Revenue Regulations No. 4-91

February 10, 1995 BIR RULING NO. 017-95 50 (b) 000-00 017-95 Bureau of Animal Industry Visayas Avenue, Diliman Quezon City Attention: Mr . Romeo N . Alcasid Director Gentlemen : This refers to your letter dated September 5, 1994 requesting for a ruling as to whether or not reimbursement of traveling expenses incurred by your Quarantine personnel (assigned at different seaports and airports) in the performance of their agents outside regular office working hours are also subject to 15% creditable withholding tax imposed under Revenue regulations No. 4-91. It is represented that you were prompted to seek clarification on the matter because some companies are imposing 15% creditable withholding tax not only to payment of overtime services rendered and reimbursement of meal allowance, but also on claims for reimbursement of traveling expenses incurred, which in your opinion is clearly excluded under Revenue Regulations No. 4-91. In reply, please be informed that Section 1(L) of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 4-91, provides, viz. : "Section 1. Income Payments Subject to Creditable Withholding Tax and Rates Prescribed Thereon . Except as herein otherwise provided, there shall be withheld a creditable income tax at the rates herein specified for each class of payee from the following items of income payments to persons residing in the Philippines. xxx xxx xxx "(L) Additional Compensation of customs personnel from importers, shipping companies, or their agents . On gross additional payments by imports, shipping companies, or their assets to certain customs personnel for overtime services and reimbursement of meal allowance 15%" cdti Accordingly, and since reimbursement of traveling expenses is not among those enumerated under the abovequoted provision of Revenue Regulations No. 6-85, as amended by Revenue Regulations No. 4-91, as subject to the 15% creditable withholding tax imposed therein, this Office is of the opinion as it hereby holds that reimbursement of traveling expenses incurred by your Quarantine personnel at different seaports and airports from importers, shipping companies of their agents, in the performance of their duties outside regular office working hours are not subject to the 15% creditable withholding tax imposed under Revenue Regulations No. 6-85, as amended by Revenue regulations No. 4-91, implementing Section 50(b) of the Tax Code, as amended. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue