BIR Ruling

May 7, 1968 Mr. Pablo Castillo San Roque, Bauan Batangas S i r : This refers to you letter dated April 1, 1968 requesting information on a query stated as follows: "I am a Filipino citizen, retired disability, receiving a disability compensation from the U.S. Veterans. I just want to inform you that I have no other means of income other than from U.S.V.A. With this situation I would like to inquire if I am still require to pay my income tax." In reply, I have the honor to inform you that pursuant to Sections 1 and 2 of Republic Act No. 360, pensions, compensations, allowances and other benefits received by a resident veteran and/or his beneficiary on or after June 9, 1949, from the United States Government, thru the United States Veterans Administration, are exempt from the income tax. Such being the case, the disability compensation paid to you by the United States Government thru the U.S.V.A.., is not subject to income tax. Moreover, if you have no other sources of income aside from such disability compensation, you need not file the required annual income tax return. bilxel Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue