Application for a Certification Relative to Residence and Tax Liability in the Philippines, a Requirement of the United Kingdom Government Authority

February 15, 1995 BIR RULING NO. 035-95 28 (b) (7) (C) 000-00 035-95 Ms. Ruth A. Tabares No. 28 Maria Dizon Street Gloria Heights Subdivision Antipolo, Rizal M a d a m : This refers to your application for the issuance of a certification relative to your residence and tax liability in the Philippines, a requirement of the United Kingdom government authority. It is represented that you migrated to the United Kingdom on September 20, 1975 as a student nurse for two (2) years and later as a full-fledge nurse in Hackney Hospital, a government hospital, at Homerton High Street, London E9; that thereafter, you transferred to Sydney House, a home for the aged, where you worked as assistant officer in-charge up to 1992; thenceforth, you worked as a private nurse of one Mr. Frank Austin up to 1994; and that you arrived in the Philippines on November 30, 1994 with the intention to remain here permanently since you did not renounce your Filipino citizenship despite your long stay in the United Kingdom as a permanent resident of that country. Your have also represented that you are receiving pensions from three (3) different pension offices as follows: Central Pension Branch (PP) L68.55/week; Paymaster General Office L150.87/month; and National Provident Institution L46.67/month; and that except for the last two (2) pension offices, Central Pension Branch (PP) is a government entity of London. In reply, please be informed that the weekly/monthly pensions paid by said pension offices of the United Kingdom are exempt from Philippine income tax, pursuant to Article 18, paragraph (3) of the RP-UK Tax Treaty and Section 28(b) (7) (C) of the Tax Code, as amended, quoted hereunder: Article 18 GOVERNMENTAL FUNCTIONS "3. Pensions paid out of public funds of the United Kingdom or Northern Ireland or of funds of any local authority in the United Kingdom to any individual in respect of services rendered to the Government of the United Kingdom or Northern Ireland or a local authority in the United Kingdom in the discharge of functions of a governmental nature shall be exempt from Philippine tax ." (Emphasis supplied) "xxx xxx xxx "Sec. 28. Gross Income . (a) . . . "(b) Exclusions from gross income . . . "(7) . . . "(A) . . . "xxx xxx xxx "(C) The provisions of any existing law to the contrary notwithstanding, social security benefits, retirement gratuities, pensions and other similar benefits received by resident or non-resident citizens of the Philippines or aliens who come to reside permanently in the Philippines from foreign government agencies and other institutions, private or public ." (Emphasis supplied) Accordingly, the attached Form X/Individual (claim by an individual to Relief from United Kingdom Tax) is hereby signed and issued to you. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue