BIR Ruling [DA-119-96]

March 26, 1996 BIR RULING [DA-119-96] Ms. Roselina B. Garraton 31 Rizal Street Sta. Maria, Laguna M a d a m : This refers to your undated letter 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 ID No. 754504; that your only source of income is the salary which you receive from the Department of Education, Culture and Sports (DECS), as a public school teacher; and that your gross compensation income is not more than P60,000.00. cHAIES 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 P60,000.00 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 Regional Director of San Pablo City, as a qualified senior citizen, you are hereafter exempt from the payment of income tax and consequently from the withholding tax on wages. (BIR Ruling No. 072-94 dated March 9, 1994) Very truly yours, (SGD.) ALICIA P. CLEMENO Assistant Commissioner (Legal Service)