Remunerations Paid by United Nations to Intergovernmental Committee for Migration Personnel Exempt from Income Tax

October 21, 1986 BIR RULING NO. 223-86 29-b 51-80 223-86 Gentlemen : This refers to your letters dated June 6, 25 and August 29, 1986 requesting exemption from the payment of income tax of the following personnel: Palawan Staff 1. Ben Mari Alli P3,209.00 2. Jessie Cabico 1,300.00 3. Sofronio Magnaye 3,716.00 4. Herbert Manaeg 3,716.00 5. Susan Manalo 4,237.00 6. Beatriz Palao 4,237.00 7. Alicia Siwa 3,465.00 8. Isidra Enriquez 4,949.00 9. Digna Ganzon employed by the Intergovernmental Committee for Migration for the refugee processing program in the Philippines First Asylum Camp in Puerto Princesa, Palawan; and that the remunerations of the aforementioned personnel are paid out of the funds of the United Nations High Commissioner for Refugees. In reply thereto, I have the honor to inform you that remunerations paid by the United Nations to the aforementioned personnel are exempt from income tax, pursuant to Section 18(b) of the Convention on the Privileges & Immunities of the United Nations, which was adopted by the U.S. General Assembly on February 13, 1946. However, pursuant to Section 17 of the said Convention, the operative act under which the tax exemption shall be enjoyed is a certification to be submitted by the United Nations to our Ministry of Foreign Affairs. Unless such certification is secured and submitted, the said personnel shall be subject to income tax. In case the remunerations are subject to income tax, the same will not be subject to the withholding tax on wages since the services in this case are being performed by citizens or residents of the Philippines for the United Nations, an international organization (Sec. 81(a)(4), Tax Code, as amended) which cannot be made a withholding agent of the Philippine Government without its consent. cdta Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue