BIR Ruling

May 20, 1969 The Deputy Administrator Social Security System East Avenue, Diliman Quezon City S i r : This refers to your query on whether or not husband and wife, as in the particular case of Mr. Rafael Grey and his wife, Mrs. Virginia Grey may be allowed to file separate income tax returns. It appears that Mr. Grey filed a real estate loan application with your Office last December, 1967 duly supported with original copies of the couple's joint income tax returns for the years 1964, 1965 and 1966; and that for the taxable year 1967, applicant offered to submit a copy of his separate income tax return. In reply, I have the honor to inform you that under Section 45(d) of the Tax Code as amplified by Section 180 of the Income Tax Regulations, married persons, whether citizens, resident or non-resident aliens should file only one consolidated return for the taxable year to cover the income of both spouses. The husband shall include in his return the income derived not only from his services, labor, or industry or the income derived from the conjugal partnership but also the income of the wife derived from her industry or labor as well as that derived from her separate, total or paraphernal property. Where, however, the filing of one consolidated return is impracticable, married persons may file separate returns but the incomes declared in such returns will be consolidated and the tax computed on such consolidated income. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue