BIR Ruling [UN-055-94]

February 10, 1994 BIR RULING [UN-055-94] Scan Trade Philippines, Inc. G & A Building 2303 Pasong Tamo Extension Makati, Metro Manila Attention: Mr . Edgardo T . Canoza VP-Treasurer Gentlemen : This refers to your letter dated May 10, 1993 requesting a ruling as to whether meal allowance of P30.00 per day which you will give to your employees every 15th and end 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 income 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. 6-82 as amended by Revenue Regulations No. 12-86) cdtech Very truly yours, JAIME M. MAZA Assistant Commissioner Legal Service