BIR Ruling

May 4, 1973 Mr. R. N. Sarto Associate Comptroller The Philippine American Life Insurance Company P. O. Box No. 1152 Manila S i r : This refers to your letter dated March 21, 1973 requesting information as to whether an individual taxpayer who has six (6) dependent children as of the end of calendar year 1972 can continue to claim additional exemption for all of them in his 1973 and subsequent years income tax returns. cdta In reply thereto, I have the honor to inform you that pursuant to Section 12 of Presidential Decree No. 69, the proviso of Section 23(c) of the Tax Code as amended by the said Decree that the total number of dependents for which additional exemptions may be claimed shall not exceed four (4) dependents shall take effect and apply to income beginning January 1, 1973. Such being the case, the individual taxpayer mentioned in your query can still claim additional exemption for all of his six (6) dependent children in his 1972 income tax return provided that he qualifies as "head of family" under Section 23(b) of the same Code; and, that such dependents are his legitimate, recognized natural, adopted or stepchildren, wholly dependent upon and living with the taxpayer, not more than twenty three (23) years of age, unmarried, and not gainfully employed or incapable of self-support because mentally or physically defective. (B.I.R. Ruling No. 73-006 dated March 30, 1973). The taxpayer may continue to claim the additional exemption for all of his six (6) dependent children in his 1973 and subsequent years income tax returns provided that as of the end of the calendar year, such dependents meet the requirements enumerated in Section 23(c) of the Tax Code as amended by Presidential Decree No. 69 which for your reference and guidance, is quoted hereunder as follows: "(c) Additional exemption for dependents . The sum of one thousand for each legitimate, recognized natural, or adopted child, wholly dependent upon and living with the taxpayer if such dependents are not more than twenty-one years of age, unmarried, and not gainfully employed or incapable of self-support because mentally or physically defective. The additional exemption under this subsection shall be allowed only if the person making the return is the head of the family. Provided, however, That the total number of dependents for which additional exemptions may be claimed shall not exceed four dependents." (BIR Ruling No. 73-013 dated April 16, 1973). cdtech Very truly yours, (SGD.) CONRADO P. DIAZ Acting Commissioner of Internal Revenue