Director Rodillo R. Catalan

January 9, 2020 ITAD BIR RULING NO. 009-20 PH-IOM Cooperation Agreement; SA Convention; RMC No. 31-2013 Director Rodillo R. Catalan Immunities and Privileges, Office of Protocol Department of Foreign Affairs 2330 Roxas Blvd., Pasay City 1300 Dear Director Catalan, This refers to the letter from the International Organization for Migration (IOM) Mission in the Philippines requesting confirmation of income tax exemption of its officials and staff, as required under Section 5 of Revenue Memorandum Circular (RMC) No. 31-2013, as amended by RMC No. 73-2013. TIADCc In reply, please be informed of Article 4 of the Cooperation Agreement between the Government of the Republic of the Philippines and the International Organization for Migration (PH-IOM Cooperation Agreement), to wit: "Article 4 The Director and the Deputy Director General of the Organization, on the one hand, and, on the other hand, the staff of the Organization shall enjoy in the Republic of the Philippines the same privileges and immunities as those granted to executive heads and to the staff respectively, of specialized agencies of the United Nations by virtue of the Convention on the privileges and immunities of the specialized agencies of 21 November 1947." In relation thereto, Article IV (Officials), Section 19 (b) of the Convention on the Privileges and Immunities of the Specialized Agencies of the United Nations (SA Convention) provides, viz. : "Section 19. Officials of the specialized agencies shall: xxx xxx xxx (b) Enjoy the same exemptions from taxation in respect of the salaries and emoluments paid to them by the specialized agencies and on the same conditions as are enjoyed by officials of the United Nations;" Based on the foregoing provisions, all officials and staff of the IOM are entitled to the same exemptions from taxation in respect of the salaries and emoluments as those being enjoyed by officials of specialized agencies of the United Nations. Their exemption from income tax has already been recognized by the Bureau under Section 2 (d) (7) of RMC No. 31-2013, to wit: "7. International Organization for Migration (IOM) Article 4 of the Cooperation Agreement between the Government of the Republic of the Philippines and the International Organization for Migration provides: xxx xxx xxx Applying the said Article 4 in relation to Section 19(b) of the Convention on the Privileges and Immunities of the Specialized Agencies of the United Nations, the Director General, the Deputy Director General and the staff of the IOM shall be exempt from Philippine income tax, regardless of their nationality or place of residence . (Underscoring supplied)" In view thereof, this Office is of the opinion as it hereby rules that the officials and staff of the IOM, regardless of their nationality and place of residence, are exempt from tax on the salaries and emoluments paid to them by the IOM, pursuant to Article 4 of the PH-IOM Cooperation Agreement, in relation to Article VI, Section 19 (b) of the SA Convention. cSEDTC This ruling is issued on the basis of the facts as represented. However, if upon investigation it shall be disclosed that the actual facts are different, then this ruling shall be without force and effect insofar as the herein parties are concerned. Very truly yours, (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue