BIR Ruling [UN-139-95]

April 4, 1995 BIR RULING [UN-139-95] Remedios G. Biag 4412 Bgy. 29 Gen T. De Leon Valenzuela, Metro Manila M a d a m : This refers to your letter dated April 4, 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 I.D. No. 687007; that you are a teacher of Lucas R. Pascual Elementary School in Baesa, Quezon City; that you derived a gross income in the amount of P58,112.90 for the year 1994; and that taxes were withheld in the amount of P1,426.35 from your compensation income for the year 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, 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 compensation 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] cd Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant Legal Service