Taxability of Salaries Received from the United Methodist Church in the Philippines and from the Methodist Church in the United States

September 8, 1992 BIR RULING NO. 253-92 21 (a) 117-90 253-92 Mr. Nicolas N. Lapuz 147 Plamengo St. Pang Hulo, Obando Bulacan S i r : This refers to your letter dated May 27, 1992 requesting a ruling as to whether the bishops of the United Methodist Church in the Philippines namely: Bishops Jose Gamboa, Emerito Nacpil and Paul Locke Granadosin who get salaries from the Philippine church and also in dollars from the Methodist Church of the United States are required to pay income tax on their two salaries. In reply, please be informed that income tax at the rates prescribed under Section 21(a) of the Tax Code, as amended, is imposed upon the taxable compensation received during each taxable year from all sources by a citizen of the Philippines. Accordingly, the income received by the three Bishops from the Methodist Church of the United States and the Philippines should be reported as part of their gross income from income tax purposes. As regards your query on whether the bishops involved have been paying their taxes since 1972, a corresponding investigation will be conducted to this effect. LexLib Very truly yours, JOSE U. ONG Commissioner of Internal Revenue