BIR Ruling [UN-376-95]

October 13, 1995 BIR RULING [UN-376-95] Mrs. Elisa T. Bobadilla No. 9 Naning Ponce St. Doa Aurora, Galas District Quezon City M a d a m : This refers to your letter dated June 13, 1995 requesting exemption from the payment of income tax pursuant to the provisions of R.A. No. 7432. It is represented that you are 72 years old; that as such, you are already a senior citizen and a holder of senior citizen ID No. 938849; that your only source of income is the salary which you receive from College Assurance Plans, (Phil), Inc. as adviser; and that for the year 1994 you derived a gross income from commission in the amount of P14,075.50 which was subjected to a withholding tax of P703.73. 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. For purposes of said Act, the term "senior citizen" shall mean any resident citizen of the Philippines at least sixty (60) years old, including those who have retired from both government offices and private enterprises, and has an income of not more than Sixty Thousand Pesos (P60,000.00) per annum subject to review by the National Economic and Development Authority (NEDA) every three years. (Sec. 2, R.A. 7432) In view thereof, and considering that you are certified by the Office of Senior Citizens Affairs (OSCA) of Quezon City as a qualified senior citizen, this Office is of the opinion as it hereby holds that you are exempt from the payment of income tax. Consequently, the tax withheld from your said income may be claimed as a refund from College Assurance Plans, (Phil), Inc. if the said amount has not yet been remitted to the government. Otherwise, you may file your request for refund with the Chief, Appellate Division, this Bureau within two years from the date of payment of said tax withheld, pursuant to Section 204 of the Tax Code, as amended. (BIR Ruling No. 066-94 dated March 2, 1995) cdtech Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)