BIR Ruling [UN-232-95]

June 28, 1995 BIR RULING [UN-232-95] Miss Lucila S. Facundo Ivisan Elementary School Ivisan, Capiz M a d a m : This refers to your letter dated April 26, 1995 requesting for exemption from income tax under Republic Act No. 7432, otherwise known as the Senior Citizens Act. cdt It is represented that you are 60 years old and was issued by the Office of Senior Citizens Affairs of Ivisan, Capiz, a senior citizen I. D. No. 922283 on October 11, 1994; that you are employed as a Teacher III of the Department of Education Culture and Sports (DECS) assigned at Ivisan Elementary School in Ivisan, Capiz; and that taxes were withheld by the DECS Accounting Division from your income for 1993-94. 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 Development Authority (NEDA) for a certain taxable year. (Sec. 3, Revenue Regulations No. 2-94 implementing Secs. 4 & 5 (a), R.A. 7432) Such being the case, having been certified as a "senior citizen" by the Office of Senior Citizens Affairs (OSCA) of Ivisan, Capiz, and if your income is not more than Sixty Thousand Pesos (P60,000.00) per annum as Teacher III, you are exempt from income tax and consequently from the withholding tax on wages. Accordingly, you may claim a refund of the taxes withheld from your income for the year 1993-94 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)