BIR Ruling [UN-121-95]

March 27, 1995 BIR RULING [UN-121-95] National Intelligence Coordinating Agency Quezon City Attention: Mr . Jaime Z . Arena, Jr . Director, Office of the Comptroller Gentlemen : In reply to your letter dated July 21, 1994 requesting clarification as to whether or not the amount of P1,300.00 granted to your employees for their clothing allowances provided in RA 7663, General Appropriation Act FY 1994, is subject to tax, please be informed that since uniforms given to government employees are officially prescribed for easy identification and security reasons, the same are not considered income/wages subject to withholding tax. Consequently, even if cash is doled out to the employees to buy the prescribed uniforms, the same is still not subject to tax (BIR Ruling No. 59-94 dated February 11, 1994). aisadc Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Rev. Executive Assistant Legal Service