Request for Refund for Overpayment of Income Tax

October 22, 1992 BIR RULING NO. 296-92 21 240-91 296-92 Mr. Renato I. Rasco Department of Agrarian Reform Nakaya Bldg., Roxas Ave. St., Kalibo Aklan S i r : This refers to your letter requesting refund in the amount of P13,200.00 representing overpayment of income tax resulting from the inclusion of RATA in the computation of income tax for taxable year 1990. In reply, please be informed that this Office has issued Revenue Memorandum Circular No. 60-91 dated July 9, 1991 clarifying that BIR Ruling No. 21(a) 000-00-062-91 dated November 6, 1991 holding that RATA is in fact a reimbursement for the expenses incurred in the performance of one's duties rather than as an additional compensation and therefore is not compensation subject to withholding tax, shall be applicable beginning taxable year 1991. Any amount of tax withheld from RATA received by qualified officials and employees from January, 1991 shall not be refunded, but shall be credited against their income tax due when the annualized withholding tax is determined as of the year end 1991. LexLib Based on the foregoing, your request for refund of the overpayment of income tax for 1990 has to be as it is hereby denied for lack of legal basis. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue