BIR Ruling

September 19, 1973 Atty. Jorge A. Dolorfino Suite 202 Burke Building Escolta, Manila S i r : This refers to your letter dated July 9, 1973 requesting information as to whether or not your client is required to file an income tax return. It is represented that your client is a resident alien legally married to a Filipina, a retired civilian employee of the U.S. Government, registered owner of a motor vehicle, owner of certain shares of stock in a domestic corporation, and whose only source of income is his pension from the U.S. Social Security System. In reply thereto, I have the honor to inform you that from the time you become a resident of the Philippines up to the year 1972, the U.S. Social Security pension received by your client during this period is subject to Philippine income tax. However, since your client is a register owner of a motor vehicle and owner of shares of stock in a domestic corporation, your client should file a Philippine income tax return whether or not said pension amounts to P1,800 a year. Sec. 45(a)(b), Tax Code). The pension should be declared in this return. In this connection, your client may avail of the amnesty provided by Presidential Decree No. 213 by filing income tax returns and pay P10 for each year that no return has been filed. If there is any tax due on the return, your client should say 20% thereof. Your client has until October 11, 1973 within which to avail of the amnesty. Beginning the year 1973, the pension being received by your client is exempt from income tax, pursuant to Presidential Decree No. 220. Nevertheless, even if his only source of income is his pension, your client is still required to file an income tax return for being a registered owner of a motor vehicle and owner of certain shares of stock in a domestic corporation. (Sec. 3, Revenue Regulations No. 6-73). In the return, the pension need not be declared. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5