BIR Ruling [UN-235-95]

June 28, 1995 BIR RULING [UN-235-95] Dr. Aurelio P. Combe Pandayan, Meycauayan Bulacan S i r : This refers to your letter dated April 25, 1995 requesting for exemption from income tax under Republic Act No. 7432, otherwise known as the Senior Citizens Act. It is represented that you are 67 years old and was issued by the Office of Senior Citizens Affairs of Meycauayan, Bulacan, a senior citizen I.D. No. 1494754 on December 6, 1994; that you are an employee of the Philippine Development and Industrial Corporation where you derive a gross income in the amount of Twenty Four Thousand Pesos (P24,000.00) a year. 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. (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 Meycauayan, Bulacan, and if your income is not more than Sixty Thousand Pesos (P60,000.00) per annum, 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 within two years from the date of payment of the tax, as provided for under Section 204 of the Tax Code, as amended. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. (BIR Rulings No. RA7432/000/00/072-94 dated March 9, 1994) cdtech Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)