BIR Ruling

February 3, 1975 Mrs. Aurora N. Abundo Konsulado Heneral ng Pilipinas Kobe, Japan M a d a m : In reply to your letter dated August 26, 1974, I have the honor to inform you that as a Filipino seaman employed and earning abroad, your husband is a non-resident citizen within the contemplation of Section 21 as amended by Presidential Decree Nos. 69 and 323. However, being an employee of the Office of the Philippine Consulate General at Kobe, Japan which is an extension of Philippine territory, you are a resident citizen for income tax purposes. Accordingly, you and your husband should file two separate returns. You must file your return in BIR Form 1701 or BIR Form 1701A and deduct from your gross income all the items allowable under Section 30 and claim the personal and additional exemptions provided for in Section 23, both of the Tax Code as amended by Presidential Decree Nos. 69 and 323. Your husband should file his return on BIR Form 1701C and compute his income tax due on his adjusted gross income, i.e., after deducting from his gross income derived from sources abroad, a personal exemption of $4,000 as married and the total national income tax paid by him to the foreign country in accordance with the rates prescribed by Section 21 of the Tax Code as amended by Presidential Decree No. 69 and further amended by Presidential Decree No. 323. aisa dc Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."