Additional Exemption

January 14, 1993 BIR RULING NO. 010-93 ADDITIONAL EXEMPTION 29 (1) (2) (A) 000-00 010-93 Sycip Gorres Velayo & Co. 6760 Ayala Avenue, Makati Metro Manila Attention: Atty . T . A . Tejada Tax Division This refers to your letter dated June 18, 1992 requesting a ruling as to whether in the case of a married individual with five children born on the following dates: casia " Child Date of Birth " 1 January 5, 1971 " 2 July 13, 1972 " 3 November 29, 1976 " 4 December 25, 1978 " 5 February 24, 1981 the P3,000 (or P5,000) additional exemption shall be applied to the first four children beginning with the eldest qualified dependent who is not more than 21 years of age. In reply thereto, I have the honor to inform you that pursuant to Section 29(1) (2) (A) of the Tax Code, as amended by Republic Act No. 7497 (effective July 28, 1992), a married individual or head of the family shall be allowed an additional exemption of five thousand pesos (P5,000) for each dependent: Provided, further , that the additional exemptions for dependents shall be claimed by only one of the spouses in the case of married individuals. The husband shall be deemed the head of the family and proper claimant of the additional exemption in respect to any dependent children, unless he explicitly waives his right in favor of his wife in the withholding exemption certificate. (Sec. 72-(f)(1), Tax Code, as amended). If any of such dependents becomes twenty-one years old during the taxable year, the taxpayer may still claim the same exemptions as if such dependents became twenty-one years old at the close of such year. (Sec. 29(1)(3), Tax Code). Such being the case, for the taxable year 1992, children born in 1971, 1972, 1976 and 1978 are the qualified dependents for which the additional exemptions of P5,000.00 for each child can be allowed. However, for the succeeding taxable year 1993, since the child born on January 5, 1971 is already over 21 years of age, the taxpayer may now include his child born in 1981 to complete the maximum of four children. cd JOSE U. ONG Commissioner of Internal Revenue