BIR Ruling [DA-291-96]

July 30, 1996 BIR RULING [DA-291-96] Mr. Felipe S. Anotado 451 Lopez Jaena St. Molo, Iloilo City S i r : This refers to your letter dated February 12, 1996 requesting in effect exemption from the payment of income tax pursuant to the provision of R.A. No. 7432. Documents submitted disclosed that you were certified by the Office of Senior Citizens Affairs (OSCA) of Iloilo City, as senior citizen with an Identification Card No. 280702 issued on July 20, 1993; and that you were an employee of the Bureau Internal Revenue, Diliman, Quezon City with a basic annual salary of P57,224.00 for the year 1993. 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 Iloilo City as a qualified senior citizen, this Office is of the opinion as it hereby holds you are exempt from the payment of income tax on your annual income of P57,224.00. Consequently, for the tax withheld from your said income as shown in the copy of your Income Tax Return for 1993 in the total amount of P2,989.64, you may file your request for refund with the Chief, Appellate Division of this Bureau within two years from the date of payment of said tax withheld, pursuant to Section 204 of the Tax Code, as amended. 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) cdtech Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Rev. Executive Assistant Legal Service