Honoraria Received by Employees who Render Services as Lecturers/Speakers in Seminars are Subject to Income Tax

September 5, 1991 BIR RULING NO. 172-91 28 (a) (1) 244-89 172-91 Gentlemen : This refers to your letter dated April 18, 1991 requesting in effect, a ruling as to whether or not honoraria received by your employees who render services as lecturers/speakers during the seminars being conducted/held in your agency participated in by COAns and non-COAns are subject to the withholding tax on wages, or to the creditable expanded withholding tax. cdta In reply, we quote the pertinent provision of Revenue Regulations No. 12-86 amending Revenue Regulations No. 6-82 otherwise known as the Withholding Tax Regulations on Compensation, as follows: "Section 2(2) Gross Compensation Income (a) In general For purposes of withholding tax, the term "compensation" means all remuneration for services performed by an employee for his employer unless specifically excepted under Sections 29 and 90 of the National Internal Revenue Code. The name by which the remuneration for services is designated is immaterial. Thus, salaries, wages, emoluments and honoraria , bonuses, allowances (such as transportation, representation, entertainment and the like), fringe benefits (monetary and non-monetary), fees, including director's fees, taxable pensions and retirement pay, and other income of a similar nature constitute compensation income . xxx xxx xxx" (emphasis supplied) Based on the foregoing, this Office is of the opinion as it hereby holds that honoraria is considered compensation income, hence, subject to income tax under Section 21 (a) of the Tax Code, and consequently to withholding tax prescribed under Revenue Regulations No. 12-86, and not under Revenue Regulations No. 6-85 otherwise known as the Revised and Consolidated Expanded Withholding Tax Regulations. cdti Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner Officer-in-Charge