Pera for 1991 - Taxable

July 21, 1993 BIR RULING NO. 336-93 PERA FOR 1991 TAXABLE 21 (a) 72 65-92 36-93 Messrs. Ermelinde Sostinto, Noel Solis, Arturo Ricafort, et al. Zamboanga del Norte National High School Department of Education, Culture and Sports Region IX, Western Mindanao Division of Zamboanga del Norte Dipolog City This refers to your letter dated February 1, 1993 in effect, requesting for exemption of your 1991 Personnel Emergency Relief Allowance (PERA) from income tax and consequently from the withholding tax on wages. In reply, please be informed that this Office has consistently ruled that PERA, e.g. for 1991, is taxable. However, in pursuance of Former President Aquino's directive in her Memorandum Circular No. 145 government offices, agencies and instrumentalities including government-owned and controlled corporations stopped deducting or withholding any income tax on PERA for 1992. Accordingly, pending resolution of our request for reconsideration of the opinion of the Secretary of Justice Franklin M. Drilon stating that PERA, like RATA should not be subject to the mandatory withholding tax, the concerned employees may file in writing with the BIR, Attn.: Appellate Division, their individual claims for refund of the withholding tax on PERA for 1991 or those already paid to them, within two (2) years after the payment of the tax pursuant to Section 204 of the Tax Code, as amended. Appropriate action on the claim for refund will accordingly be taken as soon as a reply to said request for reconsideration is received from the Office of the President. It should be understood, however, that should our request for reconsideration be upheld, deduction and remittance of the withholding tax on PERA for 1992 will be resumed. Corresponding deduction shall likewise be made from employees to cover PERA already paid to them which have not been subjected to withholding tax. cdtech LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue