BIR Ruling

March 17, 1967 Mr. Delfin C. Sibal Alpha Insurance & Surety Co., Inc. Manufacturer's Bldg., Plaza Sta. Cruz Manila S i r : This refers to your letter dated February 15, 1967 requesting information as to whether or not for income tax purposes, a taxpayer is entitled to an additional exemption of P1,000.00 for a dependent child who became twenty-three (23) years of age in the middle of the taxable year. In reply thereto, I have the honor to inform you that for purposes of the personal and additional exemptions, the status of the taxpayer is determined at the end of the taxable year. Under Section 23(c) of the Tax Code, a taxpayer who qualifies as head of a family is entitled to an additional exemption of P1,000.00 for each of his legitimate, recognized natural, or adopted child, wholly dependent upon and living with the taxpayer if such dependents are not more than twenty-three (23) years of age, unmarried, and not gainfully employed or incapable of self-support because mentally or physically defective. Inasmuch as the taxpayer's child adverted to in your query is already more than 23 years of age at the end of the taxable year, the former is no longer entitled to said additional exemption of P1,000.00. In determining the amount of tax to be withheld by the employer upon the wages of the employee, the civil status of the employee and the number of additional exemptions for dependents in accordance with Section 23 of the Tax Code must be ascertained. The employee is, therefore, required to furnish the employer with a signed withholding exemption certificate, on form W-4 relating to the personal and additional exemptions he claims. If the employee fails to furnish his employer with such certificate, such employee shall be considered as claiming no exemptions for purposes of the withholding tax on wages. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue