BIR Ruling

February 28, 1972 Mr. Angel C. Llaneza Poblacion San Quintin, Abra B-117 S i r : This refers to your letter dated May 4, 1971 requesting information on whether or not for income tax purposes, U. S. Social Security Pensions are subject to tax. In reply thereto, I have the honor to inform you that under Section 45(1)(A) & (B) of the Tax Code as amended by Republic Act No. 6110, every Filipino citizen, whether residing in the Philippines or abroad, and every alien residing in the Philippines, regardless of whether his gross income was derived from sources within or without the Philippines, are required to file income tax returns and to pay the tax thereon. Moreover, Republic Act No. 4917 is by express provision applicable only to retirement benefits of officials and employees of private firms in the Philippines. Accordingly, social security pensions of retired U.S. Government employees are not covered by the said law. In view thereof, and considering that there is no law declaring U. S. Social Security pensions exempt from Philippine Income tax, the pensioner or retiree is required to file an income tax return and pay the corresponding tax every year if his total gross income which include said pension received each year amounts to one thousand eight hundred pesos, or more. (See. Sec. 45, N.I.R.C.) cdta Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue