Revenue Regulations Implementing PD 1868 Granting Special Additional Personal Exemption

July 19, 1983 REVENUE REGULATIONS NO. 06-83 SUBJECT : R evenue Regulations Implementing PD 186 8 Granting Special Additional Personal Exemption TO : All Internal Revenue Officers and Others Concerned SECTION 1 . Scope . Pursuant to the provisions of Sections 326 and 91, in relation to Section 23, as amended by PD 1868, all of the National Internal Revenue Code, these regulations are hereby promulgated to prescribe the supplementary withholding tax tables to take into account the special additional personal exemptions (hereinafter referred to as special exemption) of employed individuals whose gross compensation income in a taxable year does not exceed Twenty Thousand Pesos (P20,000.00). SECTION 2 . Supplementary Withholding Tax Tables . Section 7 of Revenue Regulations No. 6-82 is hereby supplemented with withholding tax tables reflecting the basic and special additional personal exemptions of employed individuals whose gross compensation income does not exceed: daily , Sixty Seven Pesos (P67.00), weekly , Three Hundred Eighty Five Pesos (P385.00), semi-monthly , Eight Hundred Thirty Four Pesos (P834.00), and monthly , One Thousand Six Hundred Sixty Seven Pesos (P1,667.00), attached herewith. SECTION 3 . Section 8 of Revenue Regulations No. 6-82 is hereby amended by adding a new paragraph (e) to read as follows: "Section 8. Right to claim withholding exemption . "xxx xxx xxx "In general, each employee may claim the following withholding exemptions in the withholding exemption certificate with respect to compensation paid on or after January 1, 1982. aisa dc "a) if single Three Thousand Pesos (P3,000) "b) if married Six Thousand Pesos (P6,000) "c) if head of the family Four Thousand Five Hundred Pesos (P4,500) "d) additional exemption for each qualified dependent child but limited to four (4) dependents, Two Thousand Pesos (P2,000), for each child, who otherwise qualifies as dependent and who was born prior 1973, One Thousand Pesos (P1,000). "e) Beginning 1983, if the gross compensation income of an employee, including that of his/her employed spouse does not exceed Twenty Thousand Pesos (P20,000), he is further entitled to SPECIAL EXEMPTION OF FOUR THOUSAND PESOS (P4,000). In the determination as to whether an employee is entitled to the special exemption, the amount of gross compensation paid to him as computed in the year-end adjustment required to be made in accordance with Section 22 hereof shall be the final basis, without prejudice to the immediate application of the supplementary withholding tax tables. "For this purpose, there is no need for an employee to file an amended withholding exemption certificate. The employer shall automatically add-up the amount of Four Thousand Pesos (P4,000) to the basic amount of personal exemption of an employee as established by him in his withholding exemption certificate (W-4)." SECTION 4 . Section 22 of Revenue Regulations No. 6-82 is hereby amended by adding a new paragraph to read as follows: aisa dc "Any amount of tax previously withheld from an employee, whose compensation income is no longer subject to withholding under the supplementary tax tables, or any excess thereof over the tax required to be withheld under the supplementary tax tables shall be treated in accordance with paragraph (b) of this section." SECTION 5 . Non-deductibility of Special Additional Personal Exemption . The special exemption in excess of the compensation income of an employee cannot be deducted by him from his other incomes. He is, however, still entitled to deduct the amount of his basic personal and additional exemptions in excess of his gross compensation income from his business or other incomes. SECTION 6 . Effectivity . These supplementary regulations shall take effect on August 1, 1983. CESAR E. A. VIRATA Minister of Finance Recommending Approval: RUBEN B. ANCHETA Acting Commissioner