BIR Ruling

October 4, 1972 Mr. Gerardo D. Degracia Santa Maria, Ilocos Sur S i r : This refers to your letter dated June 19, 1972 requesting information as regards your and you wife's liability to the payment of income tax. You alleged that you are a United States veteran having joined the United States Army during World War II; that you are receiving 103 dollars as U.S. Veteran and 98 dollars from the Social Security; and that your wife is also receiving 39 dollars as bar SS pension. In reply thereto, I have the honor to inform you that pensions, compensations and other benefits granted or administered by the U.S. Veterans Administration are exempt from income tax. However, there is no Philippine law which exempts from income tax you and your wife's pensions from the Social Security of the United States. In view of the foregoing, it is the opinion of this Office that your pension as U.S. Veteran is exempt from income tax while you and your wife's pension from the Social Security of the U.S. are subject to Philippine income tax. aisadc Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue