Filing of an ITR by a Filipino Citizen Residing in Okinawa

August 13, 1958 BIR RULING NO. 435-58 Miss Rosita N. Ghilo 1321-B O'Donnell Sta. Cruz, Manila M a d a m : This is in answer to your letter dated February 6, 1958 relative to the filing of an income tax return by a Filipino citizen residing in Okinawa as an employee of the U.S. Army. A Filipino citizen employed by the U.S. Army in Okinawa is required to file an income tax return in the Philippines. The mere fact that he has not returned to the Philippines for a number of years or that he has not remitted any amount to his family in the Philippines does not exempt him from the filing of said return because in accordance with Section 45 of the Tax Code, every citizen of the Philippines of lawful age, whether residing at home or abroad, having a gross income of P1,800.00 or over must file an income tax return. As a resident of Okinawa, he is naturally also subject to tax imposed by the laws of said country. But the mere fact that he pays income tax to the Okinawan government does not entitle him to exemption from Philippine income tax on the ground of double taxation. For although the same income is taxed twice, the double taxation is not the result of one government taxing the same income two times, but two governments, both having jurisdiction over the taxpayer, taxing the same income once. However, any income tax he paid in Okinawa may be availed of by him as a deduction under Section 30(c)(1)(B) of the Tax Code or as credit against his Philippine income tax under Section 30(c)(3) of same Code. prll Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue