BIR Ruling No. 184-82

May 24, 1982 BIR RULING NO. 184-82 91-00 177-81 184-82 Luzon Stevedoring Corporation Tacoma & 2nd Streets Port Area, Manila Attention: Ma . Grace T . Jhocson Head, Personnel Gentlemen : This refers to your letter dated October 30, 1980, requesting a ruling as to whether the income of your Filipino crew members on board your ocean going vessels are subject to withholding tax. It is represented that you have about ten ocean going vessels based in different countries; that these vessels are all manned by Filipino crew members whose salaries are drawn here through their respective allottees; that because of occasional exigencies, these vessels have to return to the Philippines for months, after which, they go on voyage again thereby staying there for interrupted periods within a year; and that in addition you have five vessels which are presently stationed abroad for almost a year. In reply, I have the honor to inform you that your Filipino crew members who have stayed outside the Philippines for not less than 183 days during the taxable year are considered as non-resident citizens even if their salaries are paid locally. Our internal revenue laws bearing on withholding tax on wages found in Chapter XI, Title II, Tax Code (not the expanded withholding tax under Section 53(f) of the Tax Code) are applicable if the employer is a domestic corporation, and the employees are Filipino citizens, even if their wage income is derived from services rendered abroad. cdtech Accordingly, the salaries paid to your Filipino crew members are subject to the withholding tax on wages and as such you are constituted as the withholding agent of the government and is therefore under obligation to deduct and withhold the corresponding income tax in accordance with the withholding tax table prescribed by Revenue Regulations No. V-8, as amended. (Section 91, Tax Code). Very truly yours, RUBEN B. ANCHETA Acting Commissioner