Whether a Taxpayer is Head of Family Must Depend on the Character of His Separation from His Family

June 24, 1977 BIR RULING NO. 005-77 Whether a taxpayer is head of family within the meaning of the statute must depend on the character of his separation from his family This refers to your request for a ruling as to whether or not a single nonresident Filipino citizen is entitled to the personal exemption of US$4,000 as head of family if his dependent/s is/are staying in the Philippines. cdt Pertinent portion of Revenue Regulations No. 2 implementing Section 23(b) of the Tax Code reads: "SEC. 11. Personal exemption of married persons and heads of family . "A head of family is an individual who actually supports and maintains in one household or more individuals, who are closely connected with him by blood relationship, relationship by marriage, or by adoption, and whose right to exercise family control and provide for those dependent individuals is based upon some moral or legal obligation. In the absence of continuous actual residence together, whether or not a person with dependent relatives is a head of a family within the meaning of the statute must depend on the character of the separation . If a father is absent on business, or a child or other dependent is away at school or on a visit, the common home being still maintained, the additional exemption applies. If, moreover, through force of circumstances a parent is obliged to maintain his dependent children with relatives or in a boarding house while he lives elsewhere, the additional exemption may still apply. If, however, without necessity, the dependent continuously makes his home elsewhere, his benefactor is not the head of family, irrespective of the question of support. A resident alien with children abroad is not thereby entitled to credit as the head of a family. Chief support means principal or main support. Partial support not amounting to chief support will not entitle the taxpayer to claim exemption as a head of a family. "xxx xxx xxx." (Emphasis supplied) It is explicit from the aforequoted revenue regulations that an individual taxpayer may qualify as a head of family not only if he maintains his qualified dependents in one household but also if his dependents live separately from him, provided that this "absence of continuous actual residence together" is justified by the character of the separation, such as those instances which are specifically cited therein. Likewise, the phrase "living with the persons" giving support in the definition of a head of a family quoted above has been construed as not necessarily meaning actual and physical dwelling together at all times and under all circumstances. (BIR Ruling No. 14, Series of 1960) Accordingly, so long as the other requisites of the law are complied with, a non-resident Filipino citizen, who is single and who, by the call of his profession or occupation, or by any other reason is constrained to live separately from his dependents and to stay abroad where he earns income out of which he sends periodic remittances of money to the said dependents for their chief support is considered as head of a family and therefore, is entitled to an allowance for personal exemption of U.S. $4,000, pursuant to Section 21 of the Tax Code, as amended by Presidential Decree No. 323. cdta