BIR Ruling

April 11, 1973 Miss Rosita S. Aguila 319 P. Herrera St. Pateros, Rizal M a d a m : In reply to your letter dated March 12, 1973, I have the honor to inform you that you are not entitled to an additional exemption of P1,000 for your dependent nephew because said additional exemption can be claimed only for dependent children under Section 23(c) of the Tax Code as amended, which for your guidance and reference is quoted hereunder as follows: "Section 23(c). Additional exemption for dependents . The sum of one thousand pesos for each legitimate, recognized natural, or adopted child , wholly dependent upon and living with the taxpayer if such dependents are not more than twenty-three 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." (As amended by Sec. 3, Republic Act No. 590 and Sec. 3, Republic Act No. 2343. (Emphasis supplied) Effective January 1, 1973, however, the maximum age for dependents qualified for additional exemption has been reduced from twenty three (23) to twenty one (21) years old, and the total number of dependents for which additional exemptions may be claimed shall not exceed four (4) dependents. (See Sec. 23(c), Tax Code as amended by Presidential Decree No. 69.) aisa dc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue