BIR Ruling

August 22, 1966 Yu Yek Huy Trading Corporation 306 Jose Rizal Street Mandaluyong, Rizal Attention: Mr . Mariano Yu General Manager S i r : This refers to your letter dated July 25, 1966 requesting a ruling based on the following query: "Mr. Yu S. Yong and his wife Jose L. Tan are together employed in our provincial warehouse at Siain, Quezon, with a monthly salary of P300.00 and P200.00, respectively. They have three children. Their personal and additional exemptions exceed their aggregate monthly income of P500.00 pursuant to Revenue Regulations No. V-70." LLjur "Opinion is respectfully requested whether the the wife in this case can be granted exemption from withholding tax in accordance with B.I.R. Ruling No. 60-216." In reply, I have the honor to inform you as follows: Under your representation, the combined salary of Mr. Yu S. Yong and Mrs. Josefa L. Tan is still exempt from withholding tax. Hence, there is no need for Mrs. Tan to ask for exemption therefrom. Besides, under Section 16 of Revenue Regulations No. V-8, as amended by Revenue Regulations No. V-70, where both husband and wife are employed either in the same or different offices, the tax to be withheld is determined on the aggregate income of husband and wife. The husband is the one entitled to the personal and additional exemptions and the wife is given the zero exemption in the withholding tax table. However, should there be any amount already collected from the said spouses as withholding tax, the same may be refunded to them provided they file, with their joint income tax return, Withholding Form No. W-2. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue