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 manila@kpmg.com or rgmanabat@kpmg.com.