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Withholding Tax on Wages Imposed on Cash Equivalent of Unused Vacation and Sick Leaves

BIR Ruling No. 028-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Feb 5, 1988

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February 5, 1988 BIR RULING NO. 028-88 28 117-87 028-88 Gentlemen : In reply to your letter dated January 23, 1988, please be informed that the cash equivalent of unused vacation and sick leaves of your employees are subject to the withholding tax on wages pursuant to Section 71 of the Tax Code, Chapter IX, Title II of the Tax Code, as amended by Batas Pambansa Blg. 135 and implemented by Revenue Regulations No. 6-82. Very truly yours, (SGD.) VICTOR A. DEOFERIO, JR. Commissioner

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