BIR Ruling No. 159-84

September 25, 1984 BIR RULING NO. 159-84 30-a-016-72-159-84 Gentlemen : This refers to your letter dated August 8, 1984 stating that you plan to conduct a seminar in Manila on the subject of U.S. immigration, investment opportunities and employment prospects in the U.S. and travel to the U.S. In connection therewith, you request opinion as to when and under what circumstances a Filipino taxpayer may deduct from his tax return the expenses and costs for attending such a seminar. In reply thereto, I have the honor to inform you as follows: 1. In the case of taxpayers receiving taxable compensation income, the expenses and costs for attending the aforesaid seminar are not deductible from their gross compensation income pursuant to Section 28 of the Tax Code, as amended; and 2. In the case of taxpayers reporting taxable net income under Section 21 (b) in relation to Section 29 both of the Tax Code the expenses and costs of attending the aforesaid seminar which is necessary in the pursuit of taxpayer's trade, business or profession are deductible under Section 30 (a) (1) (A) of the Tax Code. Business expenses deductible from gross income includes the ordinary and necessary expenditures directly connected with or pertaining to the taxpayer's trade or business. (Section 65 Income Tax Regulations) Thus, expenses incurred to maintain or improve skills required by the taxpayer in his present trade, business or profession are deductible. atdc Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner