BIR Ruling

February 19, 1974 Mr. Florencio A. Davis 242-A F. Ramos Street Cebu City S i r : In connection with your letters dated October 15, 1973 and January 7, 1974 requesting exemption from the filing of the annual income tax returns, please be informed that since you did not state therein your income, the amount and sources thereof, this Office cannot formulate a definite ruling on your said request. However, for your information and guidance, pertinent portions of Section 45 of the Tax Code, as amended by Presidential Decree No. 69 are quoted hereunder as follows: "SEC. 45. Individual returns . (a) Requirements. (1) The following individuals are required to file an income tax return, if they have a gross income of at least one thousand eight hundred pesos for the taxable year: (A) Every Filipino citizen, whether residing in the Philippines or abroad and, xxx xxx xxx xxx xxx xxx (3) Notwithstanding the provisions of the preceding paragraph, a Filipino citizen, whether residing in the Philippines or abroad, or a resident alien, or a nonresident alien engaged in trade or business in the Philippines, shall file an income tax return if he falls under any of the following categories, regardless of whether he derives any income or not for the taxable year if, during that taxable year, he (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 of any real property; (D) Is a registered or beneficial owner, or mortgagee of 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 officials and municipal councilors; (H) Is engaged in trade or commerce. For purposes of this section, an individual is deemed a professional if, during a taxable year, he passes any government examination for the practice of a profession given by a board of examiners or by the Supreme Court, or remains a registered member of any profession covered by such examination, regardless of whether or not, during that taxable year he actually practices his profession. The income tax return shall be filed in duplicate and shall set forth specifically the gross amount of income from all sources, except that of non-resident aliens engaged in trade or business in the Philippines which shall contain only such incomes derived from sources within the Philippines. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5