Taxation of compensation income of employees of foreign governments and international organizations

To clarify this issue, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) 31-2013 dated April 12, 2013 providing guidelines on the taxation of compensation income of employees of foreign government and/or international organization based in the Philippines.  Under RMC No. 31-2013, the tax treatment of the compensation income of employees of foreign governments and international organizations based in the Philippines shall be as follows:

(To be continued)

Sheryl Mae T. Amarille-Vegilla is a manager  from the Tax Group of Manabat Sanagustin & Co. (MS&Co.), the Philippine member firm of KPMG International.

This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity.

The view and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG International or MS&Co. For comments or inquiries, please email [email protected] or [email protected].