BIR Ruling No. 030-63

April 2, 1963 BIR RULING NO. 030-63 The Regional Director BIR Regional District No. 5 San Pablo City S i r : This has reference to your letter dated April 27, 1962, requesting information as follows: "1. For Tax census purposes, is the term 'resident' as used in Section 1 of said law to be interpreted as having the same meaning as that of 'citizen' under the Income Tax Law, with respect to Filipinos residing abroad? 2. What is the criterion in determining whether or not a Filipino citizen residing abroad for a number of years is still considered a resident of the Philippines? Is physical presence necessary for a certain period of time during the year to which the Statement of Assets, Income and Liabilities refers? If so, how long should said Filipino citizen stay in this country during the year, although he may be temporarily absent therefrom, in order that he may be subject to the filing of tax census statement? 3. In case of absence from the Philippines of a Filipino citizen who has no property in this country, what is the length of time required of him so that he may be considered to have lost his residence and consequently exempt from filing the tax census statement? 4. If these Filipino citizens are required to file their Statement of Assets, Income and Liabilities but failed to do so on the time prescribed by law, how could we prosecute them considering that they are beyond the jurisdiction of Philippine Courts? 5. If these Filipino citizens are required to file their returns, could we grant them extension of time within which to file said returns on the basis of the reasons advance by them?" In reply thereto, I have the honor to inform you as follows: 1. The terms resident and citizen do not have the same meaning in the Tax Census Law, neither in the Income Tax Law. For income tax purposes under Section 21 of the Tax Code, "the term "resident" refers to resident aliens and does not include citizens inasmuch as citizens of the Philippines residing therein are taxed as such citizens and not as residents," (21(7)) National Internal Revenue Code annotated by Araas, Vol. 1, p. 36). While under the Tax Census Law, R.A. No. 2070 as amended, the term "resident" in Section 1 thereof, refers to all persons, citizens and aliens alike, residing in the Philippines. Section 1 of R.A. 2070 requires all residents of the Philippines to file a statement under oath, showing among other things the affiant's name, age, sex, nationality, etc. 2. A Filipino citizen residing abroad temporarily or permanently, loses his actual residence in the Philippines. But for Tax Census purposes, a Filipino citizen is required to file the returns while in the country, although he has been previously absent therefrom. 3. According to the last paragraph of Section 2, Revenue Regulations No. V-71, Filipino who have lost their residence in the Philippines are not required to file the sworn statement, but should they have properties in the Philippines they must file the same through their administrators. However, when an individual is unable to make his own statement because of sickness or absence from the Philippines, the statement may be made for him by his authorized representative, but the authority should be attached to the statement. (4th paragraph, Sec. 2, Rev. Reg. No. V-71). cdpr 4. Filipino citizens residing abroad are not required to file the tax census returns, therefore, the question of jurisdiction becomes moot and academic. 5. Assuming arguendo that they are required to file the tax census returns, they may be given an extension of time to file the same considering the peculiar situation they are in, and in the same manner that we grant extension of time to taxpayers who are victims of calamities such as fire and typhoon, to pay their taxes. However, in no case shall the extension of time be granted beyond the limitations prescribed by the last paragraph of Section 1, R.A. No. 2070. Very truly yours, (SGD.) JOSE B. LINGAD Acting Commissioner of Internal Revenue The above ruling was duly signed by the Acting Commissioner of Internal Revenue on April 2, 1963. prcd (SGD.) P. F. LANDAS Revenue Operations Head (Legal)