BIR Ruling No. 268-61

July 10, 1961 BIR RULING NO. 268-61 Miss Dolores M. Cason No. 1, Arias Compound 3rd St., Villamor Court Tambo, Paraaque, Rizal M a d a m : In reply to the queries contained in your letter dated April 10, 1961, I have the honor to inform you as follows: 1. Mr. Pedro Hernandez, a naturalized citizen of the United States and residing thereat with real properties located and administered in the Philippines is considered a non-resident alien engaging in trade or business in the Philippines. 2. As such non-resident alien engaged in trade or business in this country, Mr. Pedro Hernandez is subject to income tax under Section 21 of the Tax Code and can avail himself of all allowable deductions under Section 30 of the same Code. 3. Being a non-resident alien engaged in trade or business in the Philippines, Mr. Pedro Hernandez is entitled to personal exemption in an amount equal to the exemption allowed by the income tax law of the country (U.S. in this case) of which he is a subject or citizen to citizens of the Philippines not residing in such country, but not to exceed the amount fixed under Section 23 of the Tax Code as exemption for citizens or residents of the Philippines. As a citizen and resident of the United States, his personal exemption is P1,800.00. 4. When Mr. Pedro Hernandez was still a Filipino citizen permanently residing in the United States the U.S. income tax he paid on income from the Philippines cannot be deducted from his gross income for purposes of Philippine income tax nor can it be claimed as a credit against Philippine income tax. However, he should have applied the Philippine income tax as credit against the U.S. income tax. 5. An income tax return can be amended any time to rectify errors in the original return. Such amended return must be filed in the Regional Office where the original return was filed. LLpr Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue