Whether Senior Citizens are Exempt from the Payment of Certification Fee and Residence Certificate

April 4, 1994 BIR RULING NO. 079-94 R.A. 7432 21 000-00 079-94 Senior Citizen Prosperidad Agusan del Sur Gentlemen : This refers to your telegram requesting for opinion as to whether Senior Citizens are exempt from the payment of certification fee and residence certificate. In reply, please be informed that Section 4 of R.A. No. 7432, "AN ACT TO MAXIMIZE THE CONTRIBUTION OF SENIOR CITIZENS TO NATION BUILDING, GRANT BENEFITS AND SPECIAL PRIVILEGES AND FOR OTHER PURPOSES", pertinent portion of which reads: "Sec. 4. Privileges for the Senior Citizens . The senior citizens shall be entitled to the following: xxx xxx xxx "a) the grant of twenty (20%) discount from all establishments relative to utilization of transportation services, hotels and similar lodging establishments, restaurants and recreation centers and purchase of medicine anywhere in the country: Provided, the private establishments may claim the cost as tax credit; "b) . . . . "c) exemption from the payment of individual income taxes; Provided, that their annual taxable income does not exceed the poverty level as determined by the National Economic and Development Authority (NEDA) for that year; xxx xxx xxx Under this 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 every three (3) years. (Sec. 2, Ibid ) Only senior citizens with an annual income of not more than Sixty Thousand Pesos (P60,000.00) are exempt from the payment of the individual income tax. This exemption does not include payment of certification fee and residence certificate. aisadc Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue