Amount Paid to COA Consultant Subject to Income Tax and Consequently to Withholding Tax

July 3, 1992 BIR RULING NO. 193-92 50 193-92 Commission on Audit Commonwealth Avenue Quezon City Attention: Mr . Eufemio C . Domingo Chairman Gentlemen : This refers to your letter dated March 20, 1992 requesting a ruling as to whether the amount of P10,000.00, the Commission on Audit (COA for brevity) will pay on a reimbursable basis to retired COA Commissioner Bartolome C. Fernandez, Jr. is subject to withholding tax. It is represented that Commissioner Fernandez retired in January 1992; that because of his wide experience in government service, COA decided to avail of his services as consultant on need or call basis; and that there shall be no employer-employee relationship between the parties, hence he shall not be entitled to any benefit accruing to regular employees of COA. In reply, please be informed that under Section 1 (a) (6) of Revenue Regulations No. 6-85, there shall be withheld a creditable income tax at ten per centum (10%) on the gross professional, promotional and talent fees or any other form of remuneration paid to Management and Technical Consultants . The amount subject to withholding shall include not only fees, but also per diems, allowances and any other forms of income payments. aisadc Based on the foregoing, this Office is of the opinion as it hereby holds that the amount of P10,000.00 to be paid to Commissioner Fernandez as a consultant is subject to income tax and consequently to withholding tax. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue