Request for Exemption from the Payment of Income Tax Pursuant to the Provisions of R.A. No. 7432

March 2, 1994 BIR RULING NO. 066-94 R.A. 7432 000-00 066-94 Mrs. Francisca I. Escoto 2-D Alley 26, Road 1 Project 6, Quezon City M a d a m : This refers to your letter dated September 15, 1993 requesting exemption from the payment of income tax pursuant to the provisions of R.A. No. 7432. Documents submitted disclosed that you were certified by the Office of Senior Citizens Affairs (OSCA) as having filed your application as senior citizen and that you are an employee of the Department of Agriculture with a basic annual salary of P53,556.00; monthly Personnel Economic Relief Allowance (PERA) of P500.00 and monthly compensation allowance of P500.00. In reply, please be informed that under R.A. No. 7432, which was approved on April 23, 1992, senior citizens shall be entitled to exemption from the payment of individual income tax; provided that their annual taxable income does not exceed the poverty level of P60,000.00 or such amount as may be determined by the National Economic and Development Authority (NEDA) for a certain taxable year. For purposes of said Act, the term "senior citizen" shall mean 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 years. (Sec. 2, R.A. 7432) In view thereof, and considering that you are certified by the Office of Senior Citizens Affairs (OSCA) of Quezon City as a qualified senior citizen, this Office is of the opinion as it hereby holds that you are exempt from the payment of income tax on your annual income of P59,556.00 excluding PERA. Consequently, the tax withheld from your said income as certified by the Accounting Division of the Dept. of Agriculture in the total amount of P2,744.00 may be claimed as a refund from that Office if the said amount has not yet been remitted to the government. Otherwise, you may file your request for refund with the Chief, Appellate Division, this Bureau within two years from the date of payment of said tax withheld, pursuant to Section 204 of the Tax Code, as amended. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue