Whether Additional Exemption for Dependents for Five Nephews and Nieces Who are Under Your Care and Whose Ages are 18, 17, 15, 8 and 3 can be Claimed

February 8, 1991 BIR RULING NO. 016-91 29 (1) (2) (A) 000-00 016-91 M a d a m : This refers to your letters dated May 15 and December 7, 1990 requesting opinion as to whether you can claim an additional exemption for dependents for your five nephews and nieces who are under your care and whose ages are 18, 17, 15, 8 and 3, respectively. It is represented that your five nephews and nieces are already orphans and are now under your guardianship. In reply thereto, please be informed that pursuant to Section 29(1) (2)(A) of the Tax Code, as amended, a married individual or a head of family shall be allowed an additional exemption of P3,000 for each dependent. Provided, that an additional exemption of P1,000.00 shall be allowed for each child who otherwise qualified as dependent prior to January 1, 1980. Under Section 29 (1) (1) of the same Code the term "head of Family" means an unmarried or legally separated man or woman with one or both parents, or with one or more brothers or sisters, or with one or more legitimate, recognized natural or legally adopted children living with an dependent upon him for their chief support, where such brothers or sisters or children are not more than twenty-one (21) years of age, unmarried and not gainfully employed or where such children, brothers or sisters, regardless of age are incapable of self-support because of mental or physical defect." Moreover, for purposes of a valid claim for additional exemption, a dependent means a legitimate, recognized natural or legally adopted child chiefly dependent upon and living with the taxpayer if such dependent is not more than twenty-one (21) years of age, unmarried and not gainfully employed or if such dependent, regardless of age, is incapable of self-support because of mental or physical defect. Such being the case, since your dependents are your nephews and nieces, you are not entitled to the additional exemption for dependents under Section 29 (1) of the Tax Code, as amended. cdti Very truly yours, (SGD.) JOSE U. ONG Commissioner