Meal Allowances of Relatively Small Value - Exempt from W/T

December 29, 1993 BIR RULING NO. 549-93 MEAL ALLOWANCES OF RELATIVELY SMALL VALUE EXEMPT FROM W/T 28 278-92 549-93 Pacific Maritime Services, Inc. S & A Bldg. 2303 Pasong Tamo Ext. Makati, Metro Manila Attention: Mr . Edgardo T . Sanoza VP-Treasurer This refers to your letter dated May 10, 1993 requesting for a ruling to the effect that meal allowance of P30.00 per day which you will give to your employees every 15th of the month is exempt from withholding tax. In reply, please be informed that pursuant to Section 2(a) of Revenue Regulations No. 6-82, as amended by Rev. Reg. No. 12-86, implementing Section 28 of the Tax Code, as amended by Executive Order No. 37, facilities or privileges furnished or offered by an employer to his employees generally are not considered as compensation subject to withholding tax if such facilities or privileges are of relatively small value and are offered or furnished by the employer as a means of promoting the health, goodwill, contentment or efficiency of his employees. Such being the case, the meal allowance of P30.00 per day to be given to your employees need not be included as part of compensation subject to withholding tax, since the same is of relatively small value and offered by your company to promote goodwill, contentment, and efficiency of your employees (Rev. Reg. No. 6-83, as amended by Rev. Reg. No. 12-86). LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue