BIR Ruling [UN-060-95]

February 10, 1995 BIR RULING [UN-060-95] Mr. Vicente Q. Ruiz 203 Lucao District Dagupan City S i r : This refers to your letters dated November 13, 1994 and January 25, 1995, requesting for a ruling to the effect that you are exempt from taxes under R.A. 7432, otherwise known as the Senior Citizens Act. It is represented that you are a senior citizen under R.A. 7432 with ID No. 1036818; that you are a retired PNB employee with meager earnings coming from commissions as insurance underwriter of Fortune Life & General Insurance Company, Inc.; that you derived a gross income in the respective amounts of P15,611.10 and P17,946.00 for 1993 and 1994; and that taxes were withheld by the said insurance company from your commission income for 1993 and 1994. In reply, please be informed that under R.A. No. 7432, which was approved on April 23, 1992, senior citizens shall be entitled to exemption from the payment of individual income tax, provided that their annual taxable income does not exceed the poverty level of P60,000.00 or such amount as may be determined by the National Economic and Development Authority (NEDA) for a certain taxable year. Having been certified as a "senior citizen" by the Office of Senior Citizens Affairs (OSCA) of the local government concerned, with an income of not more than Sixty Thousand Pesos (P60,000.00) per annum derived from part time job as insurance underwriter of Fortune Life & General Insurance Company, Inc., you are therefore exempt from income tax and consequently from the expanded withholding tax. Likewise, you may claim a refund of the taxes withheld from your commission income for the years 1993 and 1994 within two years from the date of payment of the tax, as provided for under Section 204 of the Tax Code, as amended. [BIR Ruling No. RA7432/000-00/072-94 dated March 9, 1994] cdta Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)