Personal Exemption of Chester A. Baird

March 29, 1960 BIR RULING NO. 154-60 Messrs. Pelaez & Jalondoni 6th Floor, Magsaysay Building San Luis, Ermita M a n i l a Gentlemen : This is in answer to your letter requesting opinion on how much may Mr. Chester A. Baird claim as personal exemption for purposes of the income tax. You stated that Mr. Baird is an "American non-resident in the Philippines" who is the "consulting Geologist" of the San Jose Oil Company, a domestic corporation engaged in business here as a "petroleum exploration concessionaire". As such consultant, Mr. Baird received from the company P40,000.00 in 1957 during which he stayed in this country for "more than six months". Being an American non-resident alien, Mr. Baird shall be allowed a personal exemption in an amount equal to that allowed by the income tax law of the United States to Filipinos who are not citizens or residents of that country. But Mr. Baird's personal exemption that may be allowed here cannot exceed the amount allowed to citizens or residents of this country. (Sec. 23(e), Tax Code.) The personal exemption allowed by the United States income tax law to Filipinos who are neither citizens nor residents of the United States is $600. (Sec. 673(d) U.S. Internal Revenue Code of 1954). Accordingly, Mr. Baird is entitled to a personal exemption of $600 or P1,200 for purposes of the income tax in this country. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue