BIR Ruling

December 17, 1969 Mr. Cesar Ong Gako Inopacan, Leyte S i r : In reply to your letter dated March 14, 1968, I have the honor to inform you that citizens of the Philippines, like your son who is presently enlisted in the United States Navy and assigned in Europe should file Philippine income tax returns, if they derive a gross income of P1,800.00 or over for the taxable year (Section 45 (a) National Internal Revenue Code.) The filing of the said return is required even if our citizens abroad pay income tax to the foreign country where they reside. However, they may claim as deduction or as a tax credit against the Philippine income tax due from them any income tax paid or accrued during the taxable year to any foreign country it they signify in their return their desire to avail of such credit. Our citizens in Europe may secure the forms of income tax returns from any embassy or consulate of the Philippines in Europe or from our internal revenue attache stationed in Madrid, Spain. If no form is available in the offices of said embassies, consulates or attache, the same may be secured from the Commissioner of Internal Revenue, Manila. After the return is accomplished, the same should be filed on or before April 15 following the end of the taxable year with the office of the said embassies, consulates or internal revenue attache. In any case, as the income tax is now payable upon the filing of the return, our citizens abroad should accompany their returns with the corresponding draft covering the amount of the tax, if any is due as indicated in their returns. Finally, any assistance as regards the preparation and filing of the Philippine income tax returns may be requested by our citizens in Europe from our internal revenue stationed in Madrid, Spain. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue