Publishing Section 23(c) of the National Internal Revenue Code of 1977, as Amended by P.D. No. 1773

February 10, 1981 REVENUE MEMORANDUM CIRCULAR NO. 12-81 SUBJECT : Publishing Section 23(c) of the National Internal Revenue Code of 1977, as Amended by P.D. No. 1773 TO : All Internal Revenue Officers and Others Concerned For the Information of all concerned, quoted hereunder is Section 23(c) of the Tax Code of 1977, as amended by P.D. No. 1773: "(c) Additional exemption for dependent . The sum of Two Thousand pesos for each legitimate, recognized natural or adopted child wholly dependent upon and living with the taxpayer if such dependents are not more than twenty-one years of age, married, and not gainfully employed or incapable of self-support because of mental or physical defect. The additional exemption under this subsection shall be allowed only if the person making the return is either married or head of the family: Provided, however , That the total number of dependents for which additional exemptions may be claimed shall not exceed four dependents: Provided, further , That an additional exemption of One Thousand pesos shall be allowed for each child who otherwise qualified as dependent prior to January 1, 1980." cd i Features of the Amendment Under the amendment introduced by P.D. No. 1773, the additional personal exemption for a dependent child has been increased from P1,000 to P2,000. The amendment also added that "an additional exemption of one thousand pesos shall be allowed for each child who otherwise qualified as dependent prior to January 1, 1980". This means that while before January 1, 1980, a taxpayer can claim additional personal exemptions for more than four (4) dependents qualified as of December 31, 1972, beginning calendar year 1980, the taxpayer can claim additional personal exemption of P2,000 for each child but limited only to maximum of four (4) dependents. With respect to the qualified dependents exceeding four (4), the taxpayer can claim only P1,000 additional personal exemption for each child. cdt It is desired that this circular be given as wide a publicity as possible. RUBEN B. ANCHETA Acting Commissioner