BIR Ruling [DA-074-96]

February 19, 1996 BIR RULING [DA-074-96] Mr. Tranquilino Enriquez Causon No. 2 Mangga Street, Resettlement Area Kalawaan Sur, Pasig City S i r : This refers to your letter dated February 13, 1996 requesting exemption from the payment of income tax pursuant to the provisions of R.A. No. 7432. It is represented that you are 64 years old; that as such, you are already a senior citizen and a holder of senior citizen I.D. No. 940362; and that your annual gross income does not exceed P60,000.00. In reply, please be informed that under R.A. No. 7432, which was approved on April 23, 1992, senior citizens shall be entitled to exemption from the payment of individual income tax; provided that their annual taxable income does not exceed the poverty level of P60,000 or such amount as may be determined by the National Economic and Development Authority (NEDA) for a certain taxable year. For purposes of said Act, the term "senior citizen" shall mean any resident citizen of the Philippines at least sixty (60) years old, including those who have retired from both government offices and private enterprises, and has an income of not more than Sixty Thousand Pesos (P60,000.00) per annum subject to review by the National Economic and Development Authority (NEDA) every three years. (Sec. 2, R.A. 7432) In view thereof, and considering that you are certified by the Office of Senior Citizens Affairs (OSCA) of Quezon City as a qualified senior citizen, this Office is of the opinion as it hereby holds that you are exempt from the payment of income tax and consequently from the withholding tax. (BIR Ruling No. UN139-95 dated April 4, 1995) cd Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)