Request for Tax Relief on Monthly Pension Received from Sources in the United Kingdom

April 1, 1986 BIR RULING NO. 031-86 29 (c) (7) 000-00 031-86 S i r : This is with reference to your letter dated March 17, 1986 requesting this Office for tax relief on your monthly pension which you receive from sources in the United Kingdom. You represented that you are a British citizen, presently residing in the above-mentioned address. You claimed that you were employed in the London Borough of Southwork Treasurer's Department, Municipal offices SPA Road Bermondsey SE 16 and, from such employment, you receive a monthly pension starting August, 1985 which is normally liable to the United Kingdom income tax. In September, 1985, you came to the Philippines to establish residence thereat. In reply, please be informed that under Article 18 of the RP-UK Tax Treaty, pensions paid out of public funds of the United Kingdom or Northern Ireland or of the funds of any local authority in the United Kingdom to any individual in respect of services rendered to the government of the United Kingdom in the discharge of functions of a governmental nature shall be exempt from Philippine tax. Furthermore, pensions received by aliens who come to reside permanently in institutions, private or public, are exempt from income tax. [Section 29(c)(7)(C), Tax Code] In view of the foregoing, your request for tax exemption in the Philippines of your pension from the United Kingdom is hereby granted. This letter will serve as your certification which you may present to the proper authorities outside the Philippines. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner