BIR Ruling

October 6, 1975 Mrs. Yvonna Ocampo c/o Luningning Carlos Apartment, Alabang Muntinlupa, Rizal M a d a m : In reply to your letter of the 3rd instant, I have the honor to inform you that if your husband can establish to the satisfaction of the Commissioner of Internal Revenue the fact of his physical presence abroad for an uninterrupted period which includes an entire taxable year, he shall be considered a non-resident citizen during the said year. In that case, he should file as income tax return B.I.R. Form No. 17.01-C and pay Philippine income tax on his adjusted gross income, i. e., after deducting from his gross income derived from sources abroad, a personal exemption of US $4,000 and the total national income tax paid by him to the foreign country, computed at the rates prescribed by Section 21 of the Tax Code as amended by Presidential Decree Nos. 69 and 323. He should also file B.I.R. Form No. 17.01 or B.I.R. Form No. 17.01-A, if he has an income derived from sources within the Philippines amounting to at least. P1,800 during the taxable year; otherwise, he need not report said income. Moreover, considering that our withholding tax law is not applicable and effective abroad, the compensation paid by the non-resident foreign shipping company to your husband is not subject to the withholding tax. Very truly yours, (SGD.) EFREN I. PLANA Acting Commissioner of Internal Revenue TAN 1450-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."