BIR Ruling No. 003-62

January 10, 1962 BIR RULING NO. 003-62 Mr. Alfredo D. Villanueva No. 33 23rd St., Olongapo, Zambales S i r : This is in reply to your letter dated May 25, 1959, wherein you requested for a ruling on a query, stated as follows: LLjur "Your audit sheet states that it is impossible to bear a child within the space of 2 months. That is correct, if from the same woman . . . "Elizabeth is my daughter from another woman is under my support and guidance. If you say she is illegitimate, will you tax her when she is of age? . . . "For your information, I am married to a Mora, has been baptized in the Moslem religion, and is permitted to have four wives under its accepted traditions and customs. If I marry three more women and have children from them (From Moroland, of course) what shall be my exemption? . . . "Please enlighten me on the subject and I hope that you will consider my case. Are Moslems subject to the same tax laws administered to the Christian? . . ." Our tax laws shall be applicable to all Filipino citizens, whether residing in the Philippines or abroad, including of course, in this regard, those in Morolandia. Pursuant to section 23 of the Tax Code, as amended by Republic Act No. 2343, you are only entitled to a personal exemption of P3,000.00 as head of the family, notwithstanding the number of wives that you might be allowed to have under your tribal customs and practices; and to an additional exemption of P1,000.00 for each of your legitimate, recognized natural or adopted children living with and totally dependent upon you for support, not more than 23 years of age, unmarried and not gainfully employed or incapable of self-support because mentally or physically defective. The increase rates of tax prescribed by Republic Act No. 2343 are applicable to income received from January 1, 1959. However, in as much as your case arose before the effectivity of Republic Act No. 2343, which was on June 20, 1959, your problems on personal and additional exemptions shall be resolved by applying the unamended provisions of section 23 of the Tax Code, and that is P3,000.00 personal exemption for your being head of the family and an additional exemption of P600.00 for each of your legitimate, recognized natural or adopted children. With respect to your daughter, Elizabeth, this Office cannot exactly determine her status for lack of specific details in your query. Nevertheless, if Elizabeth is neither your legitimate nor acknowledged natural child, then you cannot claim an additional exemption of P600.00 to P1,000.00 as the case may be, for her. As to who shall be considered your legal wife, legitimate, recognized natural or adopted children for that matter, shall be determined in accordance with the provisions of Title VIII (Paternity and Filiation) in relation to Articles 78 and 79 of the Civil Code. Please be guided accordingly. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue