BIR Ruling [UN-200-94]

July 8, 1994 BIR RULING [UN-200-94] Office of the Sangguniang Bayan Municipality of Dr. J. Rizal Palawan Attention: Mr . Raymundo F . Besaga, Jr . Secretary to the Sangguniang Bayan Gentlemen : This refers to your Resolution No. 93-188 dated July 27, 1993, requesting information as to whether the salary of the President of the Sangguniang Kabataan (SK) who is an ex-officio member of the Sangguniang Bayan (SB) is subject to the withholding tax, in the light of the provisions of Section 13 of P.D. No. 1191 reading: "SEC. 13. Tax Exemption The KB Pambansang Katipunan shall be exempted from all forms of taxation or other impositions, whether local or national, and shall be free from all duties and all other imposts on any equipment, articles or goods which it may import, when reasonably necessary for use in its importations." In reply, please be informed that the aforequoted provision of law is explicit that it is the KB Pambansang Katipunan which is exempt from all forms of taxation and not the individual members thereof, be he/she the President of the Sangguniang Kabataan. Such being the case, the compensation income of the SK President who is an ex-officio member of the Sangguniang Bayan of that Municipality is subject to income tax and consequently to the final withholding tax. cdt Very truly yours, ALICIA P. CLEMENO Acting Assistant Commissioner (Legal Service)