RMC No. 19-2016: Clarifies the tax treatment of the Monthly Provisional Allowance and Officer’s Allowance given to military personnel/officers under the recently signed Executive Order, entitled “Modifying the Salary Schedule for Civilian Government Personnel and Authorizing the Grant of Additional Benefits for Both Civilian and Military and Uniformed Personnel”

Key points

1. Basis. Section 3 of RA No. 9040 lists the pay and allowances of Armed Forces members that are exempt from Income Tax. The two allowances under the Executive Order are not on that list.
2. Reasoning stated. Where the law lists the subjects it covers, those not expressly mentioned are excluded from its effect.
3. Result. Not being in the Section 3 enumeration, the Monthly Provisional Allowance and Monthly Officer’s Allowance are subject to Income Tax.

Who is affected

• Military personnel and officers receiving the Monthly Provisional Allowance and Monthly Officer’s Allowance