Request for the Refund of 10% Income Tax Withheld from Commissions from the Provident Insurance Corporation, Commonwealth Insurance Company and Pace Setter Insurance Agency, Inc. Pursuant to the Provisions of R.A. No. 7432

March 9, 1994 BIR RULING NO. 072-94 R.A. 7432 000-00 072-94 Mr. Tomas T. Evora 104 Labo St., La Loma Quezon City S i r : This refers to your letter dated December 17, 1993 requesting for the refund of the 10% income tax withheld from your commissions from the Provident Insurance Corporation, Commonwealth Insurance Company and Pace Setter Insurance Agency, Inc. in the respective amounts of P2,667.84, P1,445.71 and P443.00 for the period from January to December, 1992, pursuant to the provisions of R.A. No. 7432. Documents submitted disclosed that you are already sixty-six (66) years old; that per your income tax return filed for 1992 you received commission income from Provident Insurance Corporation, Commonwealth Insurance Company and Pace Setter Insurance Agency, Inc. in the respective amounts of P26,682.13, P14,457.10 and P8,860.77 or in the total amount of P50,000.00. 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 (3) 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 commission income of P50,000.00 received in 1992 from the aforesaid insurance companies. Consequently, the tax withheld from your said income declared per return filed for the year 1992, in the total amount of P4,556.55 may be claimed as a refund from the insurance companies if the said amount has not 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. Likewise, you may claim a refund of the tax withheld from your commission income for the year 1993 provided that your aggregate annual income for that year does not exceed P60,000.00. aisadc Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue