Whether an Honorarium is Subject to the Withholding Tax
BIR Ruling No. 137-95 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Sep 6, 1995
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September 6, 1995 BIR RULING NO. 137-95 21 000-00 137-95 Ms. Germelinas T. Baoy Alabang Stock Farm Alabang, Muntinlupa Metro Manila M a d a m : This refers to your letter dated June 15, 1995 requesting clarification as to whether your honorarium is subject to the withholding tax. LLphil It is represented that you are a Senior Citizens Card Holder; that you are doing some part time job by giving lectures; that you receive compensation in the form of honorarium on a per (P60,000.00) per annum; that the Technology and Livelihood Resource Center wherein you give lectures deducts 10% from your honorarium as withholding tax. In reply, please be informed that under Republic Act No. 7432 Senior Citizens are exempt from income tax when their income does not exceed Sixty Thousand Pesos (P60,000.00) per annum. Accordingly, since your income by way of honorarium is less than Sixty Thousand Pesos per annum as represented, said honorarium is exempt from income tax. In view thereof, the honorarium you receive from the Technology and Resource Center is not subject to the 10% withholding tax. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue
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