Non-taxability of Representation & Transportation Allowances of Government Officials
BIR Ruling No. 026-92 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jan 17, 1992
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January 17, 1992 BIR RULING NO. 026-92 21 240-91 026-92 Sangguniang Bayan Bayan Ng Kidapawan Lalawigan Ng Hilagang Kutabato Attention: Mr . Augusto R . Gana Municipal Mayor Gentlemen : This refers to your Resolution No. 60-91 requesting a ruling as to non-taxability of Representation & Transportation Allowances of government officials. In reply, please be informed that this Office has issued Revenue Memorandum Circular No. 60-91 dated July 9, 1991 clarifying that BIR Ruling No. 62-91 dated November 6, 1991 holding that RATA is in fact a reimbursement for the expenses incurred in the performance of one's duties rather than as an additional compensation and therefore is not compensation subject to the withholding tax, shall be applicable beginning taxable year 1991. Any amount of tax withheld from RATA received by qualified officials and employees from January 1, 1991 shall not be refunded but shall be credited against their income tax due for 1991 when the annualized withholding tax is determined in accordance with Section 22(b) of Revenue Regulations No. 6-82, as amended. Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue
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