Treatment of Directors Fee according to BIR

In view thereof, the penultimate paragraph of Revenue Memorandum Circular  No.  34-2008 stating that directors receiving fees, per diems, allowances, and the like, from  corporations of which they are directors but are not employees thereof “fall  under  the  category of  sellers of  services  under 
Title IV  of the Code who are liable to pay the 12%  VAT on their gross receipts pursuant to Section 108 thereof, or to the 3% percentage tax imposed under Section  116,  should  they    fail  to    meet    the    VAT  threshold”


Source / Reference : RMC 77-2008