Financial Support in terms of Rice Allowance in Meager Amount to Missionaries are Donations Not Subject to Income Tax
BIR Ruling No. 198-91 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Sep 19, 1991
Full text
September 19, 1991 BIR RULING NO. 198-91 21c 55-89 198-91 Gentlemen : This refers to your letter dated July 9, 1991 requesting that the rice allowance of P400 per month you give to your missionaries be exempt from withholding tax. It is represented that Translators Association of the Philippines, Inc. is a religious and non-profit organization registered with the Securities and Exchange Commission under Regulations No. 111710; that due to prevailing economic hardship, the Board of Directors of the Association proposed to give your missionaries rice allowance of P400 per month and that these missionaries served Filipino brothers in cultural communities. In reply, please be informed that financial support in terms of rice allowance in meager amount given to missionaries are not compensation and/or salary but donations and therefore, not subject to income tax and consequently to withholding tax. cdta Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner and Officer-in-Charge
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