OCA CIRCULAR NO. 29-2006, February 21, 2006
OCA CIRCULAR NO. 29-2006, February 21, 2006
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ALL LOWER COURT PERSONNEL
RECEIVING SALARY GRADE 1 TO 3 (PROCESS SERVERS in Municipal Trial Court, Municipal Circuit Trial Court and Shari’a Circuit Court, and COURT UTILITY WORKERS) |
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SUBJECT:
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EXEMPTION FROM THE REQUIREMENT OF WITHHOLDING TAX ON COMPENSATION UNDER REVENUE REGULATION NO. 1-2006
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On December 29, 2005 , the Bureau of Internal Revenue issued Revenue
Regulation No. 1-2006 which provides that compensation income of
government employees of the Philippines or any of its agencies or
instrumentalities with Salary Grade 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
Grade 1 to 3 will no longer be deducted the withholding tax pursuant to
the provision of Revenue Regulation 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 riling under Revenue Regulation 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.
February 21, 2006.
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PRESBITERO J. VELASCO, JR.
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Court Administrator
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