Representation and Transportation Allowance

When is a representation allowance and transportation allowance taxable? When is it non-taxable or exempted?

it depends on a case to case basis, particularly the amount, the salary of the person and the nature of his work. if you are in marketing, then I would say it is not taxable because it is in the nature of your work. if you are in accounting, then it seems more like a fringe benefit which is taxable.

the main question is whether the allowance adds to the income of the recipient, then it is taxable.

Per DBM's National Expenditure Program for Fiscal Year 2008, Section 45 of its General Provisions enumerates the rates of the Representation and Transportation Allowance (RATA) were identified. The RATA of our Division Chiefs and Head of our agency were based on this DBM memo. In this case, is it taxable or tax-exempt?

oh, this is for a government position? on its face, i'd say it is not taxable.

Under paragraph 3 of Section 3.3 of BIR's Revenue Regulation 10-2008 states that:
"Regular compensation includes basic salary, fixed allowances for representation, transportation and other allowances paid to an employee per payroll period."

The regular compensation income are considered taxable. Under this section, it also states further that:
"Representation and Transportation Allowance (RATA) granted to public officers and employees under the General Appropriations Act and the Personnel Economic Relief Allowance (PERA) which essentially constitute reimbursement for expenses incurred in the performance of government personnel's official duties shall not be subject to income tax and consequently to withholding tax"

In our case, the RATA adds to the income of the recipient. It is not used in line with the performance of their duty. Thus, is it taxable or not?

RATA is issued with the assumption that the person receiving it is qualified to do so. in addition, there is a very strong presumption of regularity.

if you are planning a complaint, you should be able to prove your case.

there is no complaint being planned. there is just a confusion whether to tax it or not.

could you please explain the situation? are you being given rata and it is taxed?