BIR Ruling No. 040-83

March 17, 1983 BIR RULING NO. 040-83 S i r : This refers to your letter dated October 21, 1981, January 29 and March 5, 1982 requesting a ruling as to whether or not the emoluments received by Dr. Bernardo F. Adiviso as a core faculty member of the Colombo Plan Staff College for Technician Education in Singapore is exempt from Philippine income tax. cdtech Documentary evidence submitted show that in a "Memorandum of Understanding", member Governments of the Colombo Plan including the Philippine Government have agreed on the establishment and operation of the Regional Centre to be known as the Colombo Plan Staff College for Technician Education which shall be located in Singapore; and that in pursuance of the said "Memorandum of Understanding", "Job Description, Terms and Conditions of Appointment and other Particulars of the Post of Core Faculty" were issued and one of the said conditions is that which pertains to the salary of a core faculty member, i.e., "net salary, which will be free of income tax, will be in the region of US $22,000 US $21,000 per annum depending on qualifications and experience." In reply, please be informed that since the aforementioned "Memorandum of Understanding" as well as the "Job Description, Terms and Conditions of Appointment and other Particulars of the Post of Core Faculty" were agreed upon by the member countries including the Philippines, the granting of a tax-exemption as prescribed therein is considered a treaty obligation binding upon the Philippine Government, and therefore, the salary of Dr. Adiviso as a core faculty member is exempt from Philippine income tax. (Sec. 29(c)(6), Tax Code.) Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue