BIR Ruling

February 23, 1977 Mr. Lowell Dunham 95 Rodriguez Subdiv., Iyam Lucena City S i r : This refers to your letter dated June 18, 1976 requesting information as to the taxability of the pension which you are receiving from the US Navy in Cleveland, Ohio, U.S.A. It appears that you are an American citizen, a resident of Lucena City since January 9, 1969 and married to a Filipino whose income is derived from the fishing business. In reply, I have the honor to inform you that beginning the taxable year 1973 your said pension is exempt from Philippine income tax and need not be reported in your income tax return pursuant to Presidential Decree No. 220 which took effect on June 20, 1973. (BIR Ruling No. 73-027) dated October 10, 1973) However, as a resident alien you should report in a joint income tax return, your wife's income from the fishing business and your income from sources without and within the Philippines including your pension received from the US Navy, Cleveland, Ohio, U.S.A., during the taxable years 1970 to 1972. (See Secs. 21 & 45(d), NIRC, as amended by PD 69). aisadc In view thereof, since you have paid income tax corresponding to your pension received during the taxable year 1973, said payment may be refunded, pursuant to Section 309(3) of the Tax Code. In this connection, it is suggested that you follow-up with our Regional Office at San Pablo City your claim for refund which you originally filed on September 30, 1975 with our Regional Office then stationed at Lucena City so that the same may be forwarded to the Commissioner, Attn.: Appellate Division, for appropriate action. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3