Request for Exemption from Withholding Tax of the 1991 Year-End Bonus or 13th Month Pay of the Base Workers Who Have Been Victims of Mt. Pinatubo Eruptions

May 27, 1992 BIR RULING NO. 166-92 21 011-91 166-92 Federation of Filipino Civilian Employee's Associations in U.S. Bases in the Philippines No. 14 Murphy St., Pag-asa Olongapo City 2201 Attention: Mr . Primo S . Galvez Executive Vice President Gentlemen : This refers to your letter dated November 19, 1991 addressed to President Corazon C. Aquino which was referred to us for proper action, requesting exemption from withholding tax of the 1991 year-end bonus or 13th month pay of the base workers who have been victims of Mt. Pinatubo eruptions. In reply, we sympathize with the predicament that befell the base workers. However, tax exemption laws are strictly construed. One claiming the benefit thereof must bring himself substantially within the terms of the statute or justify his claim by the clearest grant of the organic or state law (House vs. Posadas, 51 Phil. 338; Asiatic Petroleum Co. vs. Llanes, 49 Phil. 466). Accordingly, in the absence of a clear grant of tax exemption, we regret to advise that we cannot grant your request for lack of legal basis. iatdc Very truly yours, JOSE U. ONG Commissioner of Internal Revenue