Request for Refund of the Excess Income Tax Paid by the Municipal Officials of Labason, Zamboanga del Norte

January 27, 1992 BIR RULING NO. 039-92 21 240-91 039-92 Sangguniang Bayan Ng Labason, Zamboanga del Norte Attention: Mr . Sagrado C . Ocuva, MD Municipal Mayor Gentlemen : This refers to your Resolution No. 90, series of 1991 requesting for refund of the excess income tax paid by the municipal officials of Labason, Zamboanga del Norte, resulting from the inclusion of RATA in the computation of their income tax for the calendar year 1990. 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. 21(a) 000-00-062-91 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 withholding tax, shall be applicable beginning taxable year 1991. Any amount of tax withheld from RATA received by qualified officials and employees from January, 1991 shall not be refunded, but shall be credited against their income tax due when the annualized withholding tax is determined as of the year end 1991. In view thereof, your request for refund of the excess income tax paid by the municipal officials of Labason, Zamboanga del Norte has to be, as it is, hereby denied for lack of legal basis. atdc Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue