Basis for Withholding Tax on the Joint Salaries of Husband and Wife

May 4, 1960 BIR RULING NO. 246-60 Mrs. Josefina V. Aragones Dumaguete City M a d a m : In reply to your letter dated April 8, 1960, I have the honor to inform you as follows: Pursuant to Articles 2(a) of Supplement A. to Title II of the Tax Code, every employer making payment of wages shall deduct and withhold upon such wages a tax determined in accordance with a withholding table to be prepared by the Secretary of Finance. In case both husband and wife are recipients of wages, the same law provides that taxes shall be withheld from the wages of the wife in accordance with the schedule for zero exemption of the withholding is mandatory and devolves upon the employer. cdta Accordingly, if upon audit of the joint return filed by you and your husband for a certain taxable year it is ascertained that you are really exempt from the payment of income tax, then you are nevertheless entitled to a refund of the amount withheld by your employer. With regard to your request for amendment of the said provisions of law, we regret to have to inform you that we have been trying to find a remedy for this problem because of similar complaints in the past but we have not found a workable solution until now. However, it appears that you and your husband have common employer, the East Visayan School of Arts and Trades. Your combined salaries may, therefore, be used as the basis for withholding tax. Since your total exemptions for exceed your combined income, no tax should be withheld from you. The East Visayan School of Arts and Trades is being advised accordingly. casia Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue