BIR Ruling [DA-225-96]

July 2, 1996 BIR RULING [DA-225-96] Dr. Miguel S. Flores 260 Arayat St., Central Park Subd. Bangkal, Davao City S i r : This refers to your letter dated 29 May 1996 requesting exemption from the payment of income tax pursuant to the provisions of R.A. No. 7432. Documents submitted disclosed that you were certified by the Office of Senior Citizens Affairs as having filed your application as senior citizen and that you are a Social Security System pensioner receiving a monthly pension in the amount of P1,900.00 or P22,800.00 per annum. 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 Office of Senior Citizens Affairs (OSCA) of Davao City as a qualified senior citizen, and that your only income is your pension from the Social Security System, which is exempt from income tax under Section 28 (b) (7) (E) of the Tax Code, as amended, this Office is of the opinion as it hereby holds that you are exempt from the payment of income tax as a qualified senior citizen under R.A. No. 7432. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, and/or any of the requirements imposed in this letter are not complied with, then this ruling shall be considered null and void. (BIR Ruling No. 066-94 dated March 2, 1994) Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)