BIR Ruling [UN-061-94]
BIR Ruling [UN-061-94] • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Feb 15, 1994
Full text
February 15, 1994 BIR RULING [UN-061-94] Asia Textiles Mills, Inc. San Cristobal, Calamba, Laguna Attention: Ms . Angelita A . Alegre Gentlemen : This refers to your letter dated October 18, 1993 requesting whether BIR Ruling No. 173-91 is applicable to your payments of monetized unused vacation leave credits of your employees. Documents submitted disclosed that your company has a policy based on the latest collective Bargaining Agreement of granting a regular employee with at least one year of service a vacation leave of 18, 20, 21 days, each year for daily, monthly and supervisory employees, respectively; that the unused vacation leaves every year are convertible to cash payable on or before December 15 for daily employees; that in case of monthly and supervisory employees, cash conversion of their vacation leaves on the 1st half of the year are payable on or before June 15, and that the unused vacation leaves for the second half of the year are payable on or before December 20. In reply, please be informed that your query is answered in the affirmative. Monetized unused vacation leave credits not exceeding ten (10) days during the year are not subject to income tax and consequently, to the withholding tax. (BIR Ruling No. 173-91). aisadc Very truly yours, JAIME MAZA Assistant Commissioner (Legal Service)
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.