Non- Entitlement of a Husband to the Special Additional Exemption

March 27, 1987 BIR RULING NO. 086-87 30 (1) (2) (B) 000-00 086-87 S i r : This refers to your letter dated March 4, 1987 requesting a ruling on a query stated as follows: "Husband's gross compensation income P18,000.00 Wife's gross compensation income P22,000.00 Less: Personal Exemption 6,000.00 6,000.00 Additional Exemption for 3 qualified dependents 9,000.00 Taxable income P3,000.00 P16,000.00 ======== ========= At the back portion of our BIR Form 1701A, under Title: Special Additional Personal Exemption, it states " In case of married individuals with qualified dependent children computing their taxes separately, the exemption (SAPE) shall be allowed only to the spouse claiming additional exemption for qualified dependents ." In our example above, the gross compensation income of the husband does not exceed P20,000.00 and he is the claimant of the exemption for their dependents. Question: Is he allowed the SAPE even if the gross compensation income of both is more than P20,000.00." iatdc In reply, please be informed in the negative. The husband in the above example shall not be entitled to the special additional exemption of P4,000.00 because the aggregate gross compensation income of both husband and wife who are computing their taxes separately, exceed P20,000, the purpose of the law being to benefit low income earners. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner