BIR Ruling [UN-236-A-95]

June 28, 1995 BIR RULING [UN-236-A-95] Mr. Roman P. Ruzol Brgy. Zabali, Baler Aurora S i r : This refers to your letter dated February 23, 1995 requesting for exemption from income tax under Republic Act No. 7432, otherwise known as the Senior Citizens Act. cdll It is represented that you are 63 years old and was issued by the Office of the Senior Citizens Affairs of Baler, Aurora, a senior citizen I.D. No. 149178; that you are connected with the Department of Public Works and Highways as Clerk IV detailed at the Provincial Auditor's Officer in Baler, Aurora; that you derive a gross income of not more than P60,000.00 per annum; and that taxes were withheld by the said government from your income. 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. Such being the case, having been certified as a "senior citizen" by the Officer of Senior Citizens Affairs (OSCA) of Baler, Quezon, and if your income is not more than Sixty Thousand Pesos (P60,000.00) per annum as Clerk IV, 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. (BIR Ruling No. RA7432/000-00/072-94 dated March 9, 1994) cdlex Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)