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Govt Expense Reimbursement Guide

This circular clarifies the treatment of reimbursable expenses made by government personnel and officials. Specifically, it states that reimbursable expenses are considered representation and transportation allowances, which reimburse officials for expenses incurred while performing duties. As such, these reimbursable expenses are not seen as government money payments and are therefore not subject to the 5% final VAT withholding. The circular is intended to clear up confusion caused by the implementation of recent tax regulations regarding reimbursable expenses.

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Naye Tomawis
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25 views1 page

Govt Expense Reimbursement Guide

This circular clarifies the treatment of reimbursable expenses made by government personnel and officials. Specifically, it states that reimbursable expenses are considered representation and transportation allowances, which reimburse officials for expenses incurred while performing duties. As such, these reimbursable expenses are not seen as government money payments and are therefore not subject to the 5% final VAT withholding. The circular is intended to clear up confusion caused by the implementation of recent tax regulations regarding reimbursable expenses.

Uploaded by

Naye Tomawis
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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REPUBLIKA NG PILIPINAS

KAGAWARAN NG PANANALAPI
KAWANIHAN NG RENTAS INTERNAS
Quezon City

February 5, 2007

REVENUE MEMORANDUM CIRCULAR NO. 13-2007

SUBJECT: Clarifications on the Treatment of Reimbursable Expenses Made by


Personnel/Officials of the Government or Any of its Instrumentalities
including Government Owned or Controlled Corporations in connection
with RA 9337, As Amended.

TO : All Internal Revenue Officials, Employees and Others Concerned.

The recent implementation of the provisions of Republic Act 9337, as amended,


and implemented by Revenue Regulations No. 16-2005, as amended, has created
confusion on the treatment of reimbursable expenses made by personnel/officials of the
government or any of its political subdivisions, instrumentalities or agencies including
government-owned or controlled corporations (GOCC). This circular is being issued to
clarify certain issues and concern as to the treatment of these type of expenses, vis-à-vis
the required withholding of 5% Final VAT from government money payments.

These reimbursable expenses are considered as Representation and Transportation


Allowance (RATA) or allowances given to public officers and employees which
essentially constitute reimbursement for expenses incurred in the performance of
government personnel’s official duties. These are expenses made by such government
officials/employees in their personal capacity even if reimbursed by the government
agency. As such, these expenses are not considered as government money payments and
are therefore, not subject to the withholding of 5% Final VAT.

All concerned are hereby enjoined to be guided accordingly and to give this
circular as wide a publicity as possible.

(Original Signed)
JOSE MARIO C. BUÑAG
Commissioner of Internal Revenue

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