BIR Ruling

July 9, 1973 Filipinas Synthetic Fiber Corporation 10th Floor, China Banking Bldg. Paseo de Roxas, Makati, Rizal Gentlemen : In reply to your letter dated December 1, 1972 requesting opinion on the queries propounded therein, I have the honor to inform you that for income tax purposes, Japanese nationals employed by you under the provisions of section 8(b) of Republic Act No. 5186, otherwise known as the Investments Incentives Act are considered non-resident aliens and under section 22(a) of the Tax Code "a non-resident alien individual who shall come to the Philippines and stay therein for an aggregate period of more than one hundred eighty days during any calendar year shall be deemed a non-resident alien doing business in the Philippines ." As to personal exemptions you are advised that if, as represented, the Japanese law grants personal exemptions in favor of non-resident alien taxpayers in Japan, then the Japanese nationals being employed by you are entitled to personal exemptions equivalent to the amount of personal exemption granted to the former, but not exceeding the amount of the personal exemptions granted under Section 23(b) of the Revenue Code of this country, which is P1,800.00 for single individuals or a married person legally separated from his spouse and P3,000.00 for married persons or "head of family". cdtech Please be guided accordingly. 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"