BIR Ruling [UN-120-95]

March 24, 1995 BIR RULING [UN-120-95] Mr. Nicasio B. Depacaquibo c/o Block 5 Lot 17 Cristina Homes, Camarin Road Zabarte, Novaliches Caloocan City S i r : This refers to your application for the insurance of a certification relative to your residence and Tax Liability in the Philippines, a requirement of the United Kingdom government Authority. It is represented that you migrated to the United Kingdom as an employee of the Saint Vincent Hospital in Wiltshire Lane, Eastcote, Pinner, Middlesex, England; that you were married to a British subject, the late Merlinda Montealto, a Nurse by profession, who worked first in Mount Vernon Hospital then in Saint Vincent Hospital; and that you arrived in the Philippines with the intention to remain here permanently since you did not renounce your Filipino citizenship despite your long stay in the United Kingdom as a permanent resident of that country. You have also represented that you are receiving pensions from the National Health Service Pension Agency thru the Paymaster General's Office Pension Service in Southerland House, Russelway, Crawley, West Sussex, England, United Kingdom at the rate of 92.51 per month. In reply, please be informed that pursuant to Article 18, paragraph (3) of the RP-UK Tax Treaty, and Section 28(b)(7)(C) of the Tax Code, as amended, stating "Article 18 " Governmental Functions "3. Pensions paid out of public funds of the United Kingdom or Northern Ireland or of funds of any local authority in the United Kingdom to any individual in respect of services rendered to the Government of the United Kingdom or Northern Ireland or a local authority in the United Kingdom in the discharge of functions of a governmental nature shall be exempt from Philippine tax ." (Emphasis supplied) "xxx xxx xxx "SEC. 28. . . . "xxx xxx xxx "(b) Exclusions from gross income. "xxx xxx xxx "(7) . . . "(C) The provisions of any existing law to the contrary notwithstanding social security benefits, retirement gratuities, pensions and other similar benefits received by resident or non-resident citizens of the Philippines or aliens who come to reside permanently in the Philippines from foreign government agencies and other institutions, private or public ." (Emphasis supplied) the monthly pensions paid to you by said pension office of the U.K. are exempt from Philippine Tax. Moreover, Section 28(b)(7)(C) of the Tax Code, as amended, likewise provides that said pension is not taxable in the Philippines. (BIR Ruling No. 035-95, dated February 15, 1995) Accordingly, the attached form X/Individual (claim by an individual to Relief from United Kingdom Tax) is hereby signed and issued to you. Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Rev. Executive Assistant (Legal Service)