BIR Ruling

September 26, 1967 The Assistant Director Revenue Region No. 20 Zamboanga City S i r : This refers to your letter dated September 5, 1967 requesting information as to whether or not the income tax paid for the year 1966 by Mr. and Mrs. Alfredo Balicanta, both Filipino citizens employed at Lahad Datu, Sabah, Malaysia, to the Malaysian Government in the amount of P2,469.00 may be credited against their Philippine income tax. LLphil In reply, please be informed that pursuant to Section 45 of the Tax Code, in relation to Section 21 thereof, every citizen of the Philippines of lawful age, whether residing at home or abroad, having a gross annual income of P1,800.00 or more from all sources shall file Philippine income tax return specifically setting forth therein the gross amount of income from all sources and deducting from the total thereof the aggregate items of authorized allowances. Accordingly, Mr. and Mrs. Alfredo Balicanta, and for that matter all Filipino citizens working and receiving income in Malaysia, are required to file Philippine income tax returns and pay the corresponding tax thereon even if they also pay income tax to such foreign country. However, the income tax paid by them to the Malaysian Government may be claimed as deduction or credited against their desire to claim the benefit of a tax credit pursuant to Section 30 (c) (3) (A) of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue