New Personal Exemptions

May 3, 1993 BIR RULING NO. 175-93 NEW PERSONAL EXEMPTIONS 29 (1) 000-00 175-93 The Chief Legal Branch, BIR Tacloban City This refers to your radiogram of January 14, 1993, in effect requesting clarification as to the personal exemption of husband and wife beginning calendar year 1992. 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 only (Revenue Regulations 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 for married individual. A spouse who does not have any taxable income shall not be entitled to personal exemption of P18,000 (Revenue Regulations No. 2-93, implementing Section 29 in relation to Section 21(f) of the Tax Code, as amended by R.A. No. 7496). aisadc VICTOR A. DEOFERIO, JR. Deputy Commissioner of Internal Revenue