BIR Ruling

September 25, 1973 Mr. Dionisio Tugadi Poblacion, Tayum Abra B-118 S i r : This refers to your letter dated May 7, 1973 requesting a ruling on the tax liability of your father, Mr. Geronimo Tugadi who, as represented, is a naturalized American citizen, retired and disabled wage earner from the State of Hawaii, U.S.A., a recipient of U.S. Social Security benefits, and admitted as a non-quota immigrant to the Philippines in 1970 with a passport-visa that would expire on August, 1974. cdtech In reply thereto, I have the honor to inform you that having been admitted to the Philippines as a non-quota immigrant (See Sec. 13, Immigration Act as amended), your father is a resident alien for Philippine income tax purposes. As such, he is required to file an annual Philippine income tax return (Sec. 45, N.I.R.C.), and to pay the corresponding income tax on his taxable net income received during each taxable year from all sources, within and without the Philippines, the tax to be computed at the rates prescribed by Section 21 of the Tax Code as amended. In other words, starting from the time he became a resident of the Philippines, your father is required to file an income tax return declaring therein his gross income of at least P1,800 from all sources including his U.S. Social Security pension received during the taxable year. His U.S. Social Security pension, however, is subject to Philippine income tax from the time of his permanent residence in his country until December 31, 1972 only because the U.S.S.S. pension which is being received by your father during the taxable year 1973, i.e., January 1 to December 31, 1973, and thereafter shall be exempt from the payment of income tax pursuant to Presidential Decree No. 220. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."