BIR Ruling [UN-124-94]

April 4, 1994 BIR RULING [UN-124-94] His Excellency The President of the Philippines Malacaang, Manila S i r : This refers to our letter dated January 23, 1992 requesting reconsideration of Presidential Memorandum Circular No. 145 dated January 17, 1992 (copy attached) adopting the opinion dated July 3, 1991 of the then Secretary of Justice and later Executive Secretary, Franklin M. Drilon to the effect that like the Representation and Transportation Allowance (RATA), the Personnel Economic Relief Allowance (PERA) is not subject to income tax and, therefore exempt from withholding tax prescribed under Section 21(a) in relation to Section 72 both of the Tax Code, as amended. Considering the numerous request for refund of about P.5B for taxes withheld in 1991, it is requested that a decision on our aforementioned request for reconsideration be rendered by that office as soon as feasible. cdtech Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue