Tax Exemption on the Pension, Allowance or Annuity Received Under Any Law of the US

February 6, 1960 BIR RULING NO. 116-60 Dr. H.W. Wade Pathologist Emeritus Leonard Wood Memorial Cullion Sanitarium Palawan, Philippines S i r : Reference is made to your letter dated January 16, 1960 stating that you were retired on March 31, 1959 and from that time your sources of income are monthly retirement allowance, annuities and old age insurance of the United States Social Security System. You now request a ruling of this Office whether or not you are liable to income tax on the above income. In reply thereto, I have the honor to inform you that if the pension, allowance or annuity received by you are made under any law of the United States and administered by the United States Veterans Administration, the same are exempt from income tax, pursuant to Republic Act No. 360; otherwise, they are subject to tax because residents of the Philippines, whether or not citizens thereof, are subject to income tax on income received from all sources. cdtech Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue