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Income Tax of the Per Diems and Allowances of the Sangguniang Bayan Members

BIR Ruling No. 244-89 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Dec 11, 1989

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December 11, 1989 BIR RULING NO. 244-89 28 (a) (1) 529-88 244-89 Gentlemen : This refers to Municipal Resolution No. 113, current series, requesting exemption from income tax of the per diems and allowances of the Sangguniang Bayan Members. cdtech In reply, please be informed that pursuant to Revenue Regulations No. 6-82 as amended, implementing Section 72, Chapter X, Title II of the Tax Code as amended by Batas Pambansa Blg. 135, per diems and allowances, like salaries and any other kind of remuneration which constitute "compensation for services", are taxable income. The name by which the remuneration for services is designated (i.e., salaries, wages, emoluments, allowances, fees, etc.) and the basis upon which the remuneration is paid (i.e., piece-work, percentage of profits, hourly, daily, weekly, monthly, annually, etc.) are immaterial in determining whether or not the remuneration for services rendered constitutes compensation income. cdt Very truly yours, (SGD.) JOSE U. ONG Commissioner

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