Whether a Canadian Citizen Married to a Filipina, Whose Income in 1994 Consists Principally of Prizes Won in International Professional Golf Competitions, is Still Required to File His Individual Income Tax Return for 1994

May 19, 1995 BIR RULING NO. 081-95 44 (B) (1) 00-00 81-95 Mrs. Arlene Mae A. Timorena Valdes Consultants. Inc. c/o No. 45 Road 3, Project 3 Quezon City M a d a m : This refers to your letter dated March 27, 1995 requesting for a clarification whether your client, Mr. Richard Vernon Gibson, a Canadian citizen married to a Filipina, whose income in 1994 consists principally of Prizes won in International professional golf competitions, is still required to file his individual income tax return for 1994. It is represented that your client is a Canadian citizen married to a Filipina; that while his permanent residence is in Metro Manila, the accumulated number of days that he stayed in the Philippines during 1994 is less than 180 days; that Mr. Gibson is an international golfer who earns his income playing golf in international competitions; that from all the prizes that he received, including those won aboard, certain amount had been withheld from his Prize as tax in the respective countries where he participated and won moderate prizes; and that his sole source of income for 1994 consists of prizes won in such competitions. In reply, please be informed that based on the foregoing facts, since Mr. Gibson is married to a Filipina and has acquired residence/domicile in the Philippines, he has the status of a resident alien, notwithstanding the fact that for 1994, his stay in the Philippines did not exceed 180 days. Residence or domicile is that place or country either (1) in which he in fact resides with the intention of residing therein (animus manendi) ; (2) in which having so resided, he continues actually to reside, though so longer retaining the intention of residing; or (3) with regard to which, having so resided there be retains the intention of residing , though he in fact no longer resides there. ( Bouvier's Law Dictionary ) Accordingly, as a resident alien, he is subject to the income tax rate under Section 21(a) of the Tax Code, However, since his income is derived solely from prizes won in international sports competitions, he is subject to the Schedular Income Tax Rate Under Section 21(a) of the Tax Code, if his prize does not exceed P3,000; otherwise, if his prize or winnings is in excess of P3,000, he is subject to the final withholding tax of 20% as provided under Section 21(c)(i) relation to Section 50(a) of the Tax Code; hence, based on the additional representation that his prizes are in excess of P3,000.00 he is not required to file his individual income tax return for 1994 pursuant to Section 44(2)(B)(i)of the same code, stating: "2. The following individuals shall not be required to file an income tax return xxx xxx xxx "(B) Regardless of the amount of income, the following individuals shall not also be required to file an income tax return: "(1) Individuals whose income consists solely of interests, prizes , winnings, royalties, dividends, share of an individual person in a partnership referred to under Section 21(C)." aisadc (Emphasis supplied) Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue