Exemption from the Requirement of Withholding Tax on Compensation Under Revenue Regulations No. 1-2006
OCA Circular No. 29-06, issued on February 21, 2006, informs lower court personnel in the Philippines with Salary Grades 1 to 3 that they are exempt from withholding tax on their monthly compensation, effective April 2006, as per Revenue Regulations No. 1-2006. Despite this exemption, these employees remain liable for income taxes and must file their annual income tax returns by April 15 of the following year. They are also not eligible for substituted filing and must complete BIR Form No. 1700 as required by existing regulations. This circular serves to guide concerned personnel regarding their tax obligations.
Law Information
- Reference Number
- OCA Circular No. 29-06
- Date Enacted
- Category
- Supreme Court Issuances
- Subcategory
- Office of the Court Administrator Circulars
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
February 21, 2006
OCA CIRCULAR NO. 29-06
| TO | : | All Lower Court Personnel Receiving Salary Grades 1 to 3 (Process Servers in Municipal Trial Court, Municipal Circuit Trial Court and Shari'a Circuit Court, and Court Utility Workers) |
| SUBJECT | : | Exemption from the Requirement of Withholding Tax on Compensation Under Revenue Regulations No. 1-2006 |
On December 29, 2005, the Bureau of Internal Revenue issued Revenue Regulations No. 1-2006 which provides that compensation income of government employees of the Philippines or any of its agencies or instrumentalities with Salary Grades 1 to 3 shall be exempted from the requirement of withholding tax on compensation. Thus, beginning April 2006, monthly compensation of lower court personnel receiving Salary Grades 1 to 3 will no longer be deducted the withholding tax pursuant to the provision of Revenue Regulations No. 1-2006.
However, the aforementioned court personnel whose compensation income is not subject to withholding tax shall remain liable for income taxes. They shall continue to file their annual income tax returns and pay the income tax due thereon, if any, not later than April 15 of the year immediately following the taxable year. Likewise, they are not qualified for substituted filing under Revenue Regulations No. 2-98 and therefore, are still required to file BIR Form No. 1700 in accordance with existing regulations.
For the information and guidance of all concerned. cCAIDS
(SGD.) PRESBITERO J. VELASCO, JR.Court Administrator
Cite This Law
Exemption from the Requirement of Withholding Tax on Compensation Under Revenue Regulations No. 1-2006, OCA Circular No. 29-06, Feb 21, 2006 (Philippines)
Exemption from the Requirement of Withholding Tax on Compensation Under Revenue Regulations No. 1-2006, OCA Circular No. 29-06 (Phil. 2006)
Related Laws
- Implementing Republic Act No. 7497, "An Act Amending Pertinent Provisions of the National Internal Revenue Code, as amended, relative to the Final Withholding Tax on Purely Compensation Income"Revenue Regulations No. 04-93 • Nov 27, 1992 • Implementing Rules and Regulations
- Finality of the Withholding Tax on Purely Compensation IncomeRepublic Act No. 7497 • May 15, 1992 • Statutes
- Amending Certain Provisions of Revenue Regulations No. 2-98, as Amended, to Implement Further Amendments Introduced by Republic Act No. 10963, Otherwise Known as the "Tax Reform for Acceleration and Inclusion (TRAIN) Law," Relative to Withholding of Income TaxRevenue Regulations No. 11-18 • Jan 31, 2018 • Implementing Rules and Regulations
- Regulations for the Implementation of the Tax Subsidy Granted Under Sec. 17 (c) of RA 3591 (PDIC Charter) as AmendedRevenue Regulations No. 006-10 • Jun 29, 2010 • Implementing Rules and Regulations
- Implements the Provisions of R.A. No. 11256 (Amending Sections 31 and 151 of the National Internal Revenue Code, as amended)Revenue Regulations No. 04-20 • Feb 18, 2020 • Implementing Rules and Regulations
- Implementing the Provisions of Republic Act (RA) No. 11494 or the "Bayanihan to Recover as One Act" Relative to the Tax Exemption of Certain Income PaymentsRevenue Regulations No. 29-20 • Oct 15, 2020 • Implementing Rules and Regulations
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