BIR Ruling [UN-086-95]

March 2, 1995 BIR RULING [UN-086-95] Mr. Miguel delos Reyes c/o Commissions on Audit Central Office, Quezon City S i r : This refers to your letter dated February 15, 1995 requesting a ruling to the effect that you are exempt from taxes under Republic Act No. 7432, otherwise known as the Senior Citizens Act. aisadc It is represented that you are a senior citizen under R.A. 7432 with I.D. No. 1438805; that you are a retiring government employee with meager earnings coming from the Commission on Audit; that you derived a gross income in the amount of not more P60,000.00 as Bookbinder III of the Commission on Audit; and that taxes were withheld by the said government agency from your income for 1994. In reply, please be informed that under R.A. No. 7432, which was approved on April 23, 1992, a senior citizen shall be entitled to exemption from the payment of individual income tax, provided that his 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 as BookBinder III of Commission on Audit, 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 income for the year 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] Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)