Separate and Distinct Income of a Common-Law Husband and Wife

May 18, 1960 BIR RULING NO. 229-60 Mr. Alfonso E. Lim 819 Marques de Comillas St. M a n i l a S i r : This is in answer to your letter requesting opinion on the facts and questions you stated as follows: cd "My client, a permanent resident in the Philippines whose legal wife resides abroad, is engaged in business in Manila and derives income therefrom. He lives with a Filipino citizen as a common-law wife with whom he begot children. His common-law wife is engaged in business on her own and derives income therefrom independently of the income of my client. "My questions are: "(1) Is the income of my client separate and distinct from the income of his common-law wife? "(2) If the income of my client is separate and distinct from the income of his common-law wife, what is the amount my client may claim as exemption for himself for purposes of income tax? What are the amounts his common-law wife may claim as exemption for herself as head of a family and as exemption for each of her children, also for purposes of income tax?" The income of your client is separate from, and should not be consolidated with, that of the woman with whom he is living in this country. Being married and permanent resident of the Philippines, your client is entitled to a personal exemption of P3,000.00 if he is not legally separated from his legal wife. The woman referred to in your statement quoted above shall be entitled to a personal exemption of P3,000 as head of a family and an additional exemption of P1,000 for each of the children she had with your client if said children are recognized by her in accordance with Article 278 of the Civil Code and are dependent upon her for their chief support, living with her, unmarried, not more than 23 years old, and not gainfully employed; or are incapable of self-support on account of a physical or mental defect, regardless of age. Otherwise, she is entitled only to the personal exemption in favor of single individuals which is P1,800. cdta Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue