Whether the Financial Support Received from Habitat for Humanity International is Subject to Income Tax

July 3, 1992 BIR RULING NO. 198-92 21 (a) 000-00 198-92 Mr. Robert Williams General Santos City Habitat for Humanity 48 I. Santiago Blvd. General Santos City 9500 S i r : This refers to your letter dated October 21, 1991 in effect requesting a confirmation that the financial support you received from Habitat for Humanity International (Habitat International for brevity) is not subject to income tax. It is represented that you are an employee of the Habitat International a non-profit Christian housing ministry organized in the United States of America that works in partnership with poor people to improve the conditions in which they are forced to live; that it has foreign affiliated chapter assigned and operating in General Santos City under the name of General Santos City Habitat for Humanity Incorporated Philippines where you are presently assigned; that Habitat International is solely responsible for your support while you are in the Philippines; and, that you received monthly living allowance which is deposited in your personal account of Citizens Bank of Americus, Georgia, USA. In reply, please be informed that as an employee of Habitat International, it is understood that you received a compensation and/or salary aside from the living allowance. Taxable compensation income received during each taxable year from all sources by every individual, whether a citizen of the Philippines or alien residing in the Philippines shall be subject to income tax at the rates prescribed under Section 21(a) in relation to Section 36 (a) (3) of the Tax Code, as amended. Compensation income includes all income payments received as a result of an employer-employee relationship, such as salaries , wages , honoraria bonus, taxable pensions, allowances , fringe benefits, fees and other income of similar nature (Revenue Regulations No. 6-82 as amended by Revenue Regulations No. 12-86). In view thereof, and since you are an employee of Habitat International receiving compensation and/or salary and living allowance, you are therefore subject to Philippine Income Tax pursuant to Section 21 (a) of the Tax Code, as amended. prll Very truly yours, JOSE U. ONG Commissioner of Internal Revenue