Personal Exemptions

May 3, 1993 BIR RULING NO. 170-93 PERSONAL EXEMPTIONS 29 (1) 000-00 170-93 Anchor Insurance Brokerage Corporation 7th Floor, Peninsula Court Paseo de Roxas corner Makati Avenue Makati, Metro Manila Attention: Ms . Jean N . Dusaban Comptroller This refers to your letter dated August 27, 1992 in effect, requesting for the clarification as to the amount of personal exemption of married employees beginning calendar year 1992 where both husband and wife are working. In reply, please be informed that if both legally married spouses are deriving taxable income or are employed, each spouse shall be entitled to a personal exemption of P18,000.00, or a total of P36,000.00 for both. However, in the case of a married individual, whose spouse is unemployed or is a non-resident citizen deriving income from foreign sources, the employed spouse or the spouse employed within the Philippines shall be entitled to a personal exemption of P18,000.00 only (Revenue Regulation No. 4-93, implementing Section 29 (1) of the Tax Code, as amended by R.A. No. 7497). Likewise, in the case of self-employed and professionals, if only one of the spouses is deriving taxable income, only said spouse shall be allowed to avail of the basic personal exemption of P18,000.00 (Revenue Regulation No. 2-93, implementing Section 29 in relation to Section 21 (f) of the Tax Code, as amended by R.A. 7496). aisadc VICTOR A. DEOFERIO, JR. Deputy Commissioner of Internal Revenue