BIR Ruling

March 11, 1976 Mr. Policarpio Baguio Gabi, Cordova, Cebu S i r : In reply to your letter dated November 6, 1975, I have the honor to inform you that pursuant to Commonwealth Act No. 186, as amended, the monthly pension checks received by the pensioners from the Government Service Insurance System are not subject to income tax. Such monthly pension need not, therefore, be included or declared in the pensioners' income tax returns which they are nevertheless required to file if they derive any other income from any source of at least P1,800.00 for the taxable year or if they fall under any of the following categories: "(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 mortgagee or any real property; "(D) Is a registered or beneficial owner, or mortgage or any motor vehicle; "(E) Is a registered or beneficial owner, or mortgagee 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 official and municipal councilors; "(H) Is engaged in trade or commerce." (Section 45(a)(3), NIRC as amended by RA No. 6110 and P.D. No. 69) regardless of the amount of income. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."