Tax Liabilities of Filipino Officials and Employees Working for the International Organizations

September 3, 1990 BIR RULING NO. 169-90 28 223-86 169-90 Gentlemen : This refers to your 1st Indorsement dated May 24, 1990 relative to the query on the tax liabilities of certain Filipino officials and employees working for the international organizations, such as the United Nations (UN), United Nations Industrial Development Organization (UNIDO), and International Atomic Energy Agency (IAEA). cdtech In reply, please be informed that pursuant to the Convention on the Privileges and Immunities of the United Nations adopted on February 13, 1946, pertinent portion of which reads: xxx xxx xxx "SECTION 17. The Secretary-General will specify the categories of officials to which the provisions of the article and article VII shall apply. He shall submit these categories to the General Assembly. Thereafter, these categories shall be communicated to the Governments of all members. The names of the officials included in these categories shall from time to time be made known to the Governments of Members. "SECTION 18. Officials of the United Nations shall : xxx xxx xxx "(b) Be exempt from taxation on the salaries and emoluments paid to them by the United Nations;" officials of the United Nations including its specialized agencies (pursuant to the Convention on Privileges and Immunities of the Specialized Agencies of the U.N. adopted by the General Assembly on November 21, 1947) who are certified as such by the U.N., UNIDO and IAEA shall be exempt from income tax. Unless such certification is secured and submitted in accordance with Section 18 quoted above, the remunerations of the personnel concerned shall be subject to income tax. In case the remunerations are subject to income tax, the same will not be subject to the withholding tax because international organizations, which are the payors in this case, cannot be made the withholding agents of the Philippine Government without its consent pursuant to Section 71(a)(4) of the Tax Code. Very truly yours, (SGD.) JOSE U. ONG Commissioner