Q: Good day. I just want to ask for clarification with regards to liquidated damages. Is it taxable or not? I saw SGV posted a BIR ruling that liquidated damages is not taxable for VAR, but only for income tax. I just want to clarify if this would also apply for government transactions. I hope you can help me. Thanks.
Is liquidated damages subject to tax? Is it taxable?
GABOTAF
Government Accountants, Budget Officers, Treasurers and Auditors’ Forum
no