Presidential Decree No. 220 Exempting from Income Tax Certain Social Security, Retirement and Other Similar Benefits

July 10, 1973 REVENUE REGULATIONS NO. 06-73 SUBJECT : Presidential D ecre e No. 220 Exempting from Income Tax Certain Social Security, Retirement and Other Similar Benefits TO : All internal revenue officers and others concerned SECTION 1. Scope . Pursuant to Section 338, in relation to Section 4, both of the National Internal Revenue Code, these regulations are hereby promulgated and shall be known as Revenue Regulations No. 6-73, REGULATIONS IMPLEMENTING PRESIDENTIAL DECREE NO. 220 EXEMPTING SOCIAL SECURITY BENEFITS, RETIREMENT GRATUITIES, PENSIONS AND OTHER SIMILAR BENEFITS FROM PAYMENT OF INCOME TAXES. SECTION 2. Coverage of exemption . The income exempted from tax includes social security benefits, gratuities, pensions and other similar benefits arising out of employment abroad and received by employees and workers who are retired and who came to reside in the Philippines for the remaining years of their lives, be they citizens of the Philippines or not, and whether the employer is a foreign government or a foreign private entity. The exemption equally applies to such incomes received by citizens of the Philippines after their retirement from the same sources even if they should continue to reside in the foreign country where they were employed or in any other country where they may emigrate after their retirement. Presidential Decree No. 220 does not cover retirement benefits under a reasonable private benefit plan provided for by R.A. No. 4917 which shall continue to be governed by said Act, as amplified by Revenue Regulations No. 1-68. aisa dc SECTION 3. Filing of income tax return . Retirees under Presidential Decree No. 220 need not file an income tax return if their only income consists of the benefits covered by the Decree. However, if they derive any other income from any source of at least P1800 for the taxable year or if they fall under any of the circumstances envisaged by Section 45 of the National Internal Revenue Code, as amended, they shall file an income tax return. SECTION 4. Effectivity . Presidential Decree No. 220 took effect on June 20, 1973, and, therefore, social security benefits, gratuities, pensions or other similar benefits received by residents, citizens or aliens, from foreign governments or from foreign private entities on and after said date shall be exempt from income tax. CESAR VIRATA Secretary of Finance Recommended by: MISAEL P. VERA Commissioner of Internal Revenue ANNEX August 13, 1973 The Honorable The Secretary of Finance Manila Sir: I have the honor to forward herewith for approval proposed Revenue Regulations No. 7-73 implementing Presidential Decree No. 213 granting amnesty to certain non-filers of income tax returns. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue