BIR Ruling

October 5, 1971 Mr. Francisco O. Santos Calumpit, Bulacan S i r : This refers to your letter dated April 1, 1971 requesting information as to whether you are required to file an income tax return, considering that you are a government retiree and that your pension is your only source of income. aisa dc In reply, I have the honor to inform you that while it may be true that the pension that you receive from the government is exempt from income tax, pursuant to Section 25(c) of Commonwealth Act No. 186, as amended, nevertheless you should file an income tax return if you come under any of the categories enumerated in Section 45 of the Tax Code, which provides that: "Sec. 45. . . . "(a)(1) . . . "(A) . . . "(B) . . . "(2) . . . "(3) Notwithstanding the provisions of the preceding paragraph, a Filipino citizen, whether residing in the Philippines or abroad, or a resident alien, or a non-resident alien engaged in trade or business in the Philippines, shall file an income tax return if he falls under any of the following categories, regardless of whether he derives any income' or not for the taxable year if, during that taxable years he, "(A) Is an official or employee of the government or has a contract with the Government of the Republic of the Philippines, or any of its agencies or instrumentalities, including government-owned or controlled corporations, regardless of the nature of his appointment or duration of his employment; "(B) Is a professional as defined herein below; "(C) Is a registered or beneficial owner or mortgage of any real property; (D) Is a registered or beneficial owner, or mortgagee of any motor vehicle; "(E) Is a registered or beneficial owner, or mortgage of any share of stock or security of a corporation, or any interest in a firm or partnership; "(F) Has travelled abroad, except children below eighteen years of age; "(G) Has filed a certificate of candidacy for any public office except barrio officials and municipal councilors; "(H) Is engaged in trade or commerce. "For purposes of this section, an individual is deemed a professional if, during a taxable year, he passes any government examination for the practice of a profession given by a board of examiners or by the Supreme Court, or remains a registered member of any profession covered by such examination, regardless of whether or not, during that taxable year he actually practice his profession. "The income tax return shall be filed in duplicate, and shall set forth specifically the gross amount of income from all sources, except that of non-resident aliens which shall contain only such incomes derived from sources within the Philippines." (As amended by Sec. 6, Republic Act No. 590 and Sec. 14, Republic Act No. 6110). If you do not come within the purview of any of the abovementioned categories, you need not file an income tax return. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue