BIR Ruling

November 2, 1971 Mr. Arsenio Ramirez San Esteban, Ilocos Sur S i r : This refers to your letter dated August 20, 1971 requesting a ruling as to whether or not the Civil service annuity which you started receiving at the age of 62 from the United States Government is subject to tax. In reply, I have the honor to inform you that unlike the retirement benefits of Government employees in the Philippines which, by express provision of law, are exempt from income tax, there is no law which exempts from income tax such annuities or pensions received by retirees for previous services rendered to the U.S. Government. Republic Act No. 4917 is by express provision applicable only to retirement benefits of officials and employees of private firms in the Philippines. Accordingly, annuities or pensions of retired U.S. Government employees are subject to the payment of income tax. acd Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue