BIR Ruling No. 204-61

May 30, 1961 BIR RULING NO. 204-61 The Municipal Mayor Minalin, Pampanga S i r : Reference is made to your letter requesting information whether or not an individual taxpayer subject to the withholding tax on wages can choose the city or municipality to which the tax withheld from him should be credited. In other words, you query is: Can a bona fide resident of that town who is employed, say, in Manila and whose employer withholds from his salary the corresponding income tax choose to credit the amount withheld in favor of that municipality, instead of the City of Manila in which the withheld amount is paid, for purpose of Section 360 of the Tax Code, as amended by Republic Act No. 2343. The pertinent provisions of said Section 360 are quoted below: "In addition to the foregoing, whenever the total collection of income taxes within a municipality or province, as the case may be, exceeds the total collection of such taxes within such municipality or province during the fiscal year nineteen hundred fifty-nine, all the excess shall be apportioned as follows: twenty per cent to the province and seventy per cent to the National Government." In answer thereto, I have the honor to inform you that, for lack of legal basis, your query has to be answered in the negative. The allotment is based on actual income tax collections in a municipality. The income tax paid in a municipality cannot be credited to another municipality for purposes of said law just because the taxpayer happened to reside in the latter. aisadc Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue By: (SGD.) MISAEL P. VERA Acting Commissioner of Internal Revenue