COLA- Subject to Income Tax; Wages- Withholding on Wages
BIR Ruling No. 121-81 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jul 22, 1981
Full text
July 22, 1981 BIR RULING NO. 121-81 90-a 000-80 121-81 C.C. Uunson Co., Inc. Culmat Building 127-133 E. Rodriguez Sr., Ave. Corner 12th Street Quezon City, Metro Manila Attention: Mr . R . C . Guadana Internal Auditor Gentlemen : In reply to your letter dated June 28, 1980, I have the honor to inform you that the "cost of living allowance" received by an employee forms part of his remuneration for services subject to income tax. Hence, it is included in the term "wages" subject to withholding on wages, in accordance with Section 90 of the Tax Code. cdtech Very truly yours, RUBEN B. ANCHETA Acting Commissioner
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