Senior Citizen - Tax-Exempt

February 16, 1993 BIR RULING NO. 066-93 SENIOR CITIZEN TAX-EXEMPT 21 (a) (7) 000-00 066-93 Mr. Dioscoro A. Carson 546 Honorio Ventura 1008 Sampaloc, Manila This refers to your letter dated August 24, 1992 requesting exemption from withholding tax pursuant to R.A. No. 7432 in view of your status as a senior citizen. It is represented that you are 64 years old; and that from your last three (3) income tax returns (1989, 1990 and 1991), your annual gross income did not exceed P60,000.00. In reply, please be informed that under R.A. No. 7432, approved on April 23, 1992 and published in Malaya on April 29, 1992, a senior citizen is defined as any resident citizen of the Philippines at least sixty (60) years old, including those who have retired from both government offices and private enterprises, and has an income of not more than Sixty Thousand Pesos (P60,000.00) per annum subject to review by the National Economic and Development Authority (NEDA) every three (3) years. Senior citizens are exempt from the individual income tax, provided, that their annual taxable income does not exceed the poverty level as determined by the NEDA for that year. (Sec. 4(c), Ibid ). Accordingly, if your annual income for 1992 did not exceed P60,000.00 you are exempt from income tax, and consequently, from the withholding taxes prescribed under either Revenue Regulations No. 6-82 as amended by Revenue Regulations No. 12-86 or Revenue Regulations No. 6-85 as amended implementing Sections 72 and 50(b) of the Tax Code as amended. You may invoke this exemption for the subsequent taxable years if your annual income will not exceed P60,000.00. cdt JOSE U. ONG Commissioner of Internal Revenue