Foreign Governments and International Organizations Exempt from Withholding of Tax of Salaries Paid to Local Employees

June 2, 1981 BIR RULING NO. 088-81 90-a-4 000-00 088-81 Intergovernmental Committee for European Migration 7th Floor, VIP Building 1140 Plaza Ferguson Street corner Roxas Boulevard Metro Manila Attention: Mr . Richard Kocher ICEM Representative Manila Gentlemen : This refers to your letter dated August 8, 1980, requesting a certificate of exemption from the obligation to withhold tax from the salaries you pay to your local employees in the Philippines. You represented that your Office is an international organization comprised of 32 member governments and several honorary members with the humanitarian task of arranging the transportation, medical and other related processing of migrants and refugees for permanent resettlement. In reply, please be informed that pursuant to Section 90(a)(4) in relation to Section 91 of the Tax Code of 1977, as amended, the wages or remunerations for services rendered by a foreign government or an international organization are exempt from the withholding tax on wages. Inasmuch as you are an international organization, you therefore have no obligation to deduct and withhold tax from the wages and/or remunerations you pay to your Filipino as well as alien employees in the Philippines. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner