Adjustment of Income Tax Exemptions
Republic Act No. 7167, enacted on December 19, 1991, amends the National Internal Revenue Code to adjust personal and additional exemptions for income tax purposes in line with the poverty threshold level. It establishes a basic personal exemption of P9,000 for single individuals or legally separated individuals without dependents, P12,000 for heads of families, and P18,000 for married individuals. Additionally, married individuals or heads of families can claim an extra P5,000 for each dependent, with a maximum of four dependents. The law emphasizes that only one spouse may claim the additional exemptions if they file separately. This Act took effect upon its approval and was published in January and February 1992.
Quick Answers
- What is Adjustment of Income Tax Exemptions about?
- Republic Act No. 7167, enacted on December 19, 1991, amends the National Internal Revenue Code to adjust personal and additional exemptions for income tax purposes in line with the poverty threshold level. It establishes a basic personal exemption of P9,000 for single individuals or legally separated individuals without dependents, P12,000 for heads of families, and P18,000 for married individuals. Additionally, married individuals or heads of families can claim an extra P5,000 for each dependent, with a maximum of four dependents. The law emphasizes that only one spouse may claim the additional exemptions if they file separately. This Act took effect upon its approval and was published in January and February 1992.
- What type of law is Republic Act No. 7167?
- Adjustment of Income Tax Exemptions (Republic Act No. 7167) is a Philippine Statutes enacted by the Congress of the Philippines.
- When was Adjustment of Income Tax Exemptions enacted?
- Adjustment of Income Tax Exemptions (Republic Act No. 7167) was enacted on Dec 19, 1991.
- What is the citation for Adjustment of Income Tax Exemptions?
- Adjustment of Income Tax Exemptions, Republic Act No. 7167, Dec 19, 1991 (Philippines)
Law Information
- Reference Number
- Republic Act No. 7167
- Date Enacted
- Category
- Statutes
- Subcategory
- Republic Acts
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
December 19, 1991
REPUBLIC ACT NO. 7167
AN ACT ADJUSTING THE BASIC PERSONAL AND ADDITIONAL EXEMPTIONS ALLOWABLE TO INDIVIDUALS FOR INCOME TAX PURPOSES TO THE POVERTY THRESHOLD LEVEL, AMENDING FOR THE PURPOSE SECTION 29, PARAGRAPH (L), ITEMS (1) AND (2)(A), OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES
SECTION 1. The first paragraph of item (1), paragraph (l) of Section 29 of the National Internal Revenue Code, as amended, is hereby further amended to read as follows:
"(l) Personal exemptions allowable to individuals. — (1) Basic personal exemption. — For the purpose of determining the tax provided in Section 21(a) of this Title, there shall be allowed a basic personal exemption as follows:
| "For single individual or married individual | |
| judicially decreed as legally separated | |
| with no qualified dependents |
P9,000
|
|
|
|
| "For head of a family |
P12,000
|
|
|
|
| "For married individual |
P18,000
|
Provided, That husband and wife electing to compute their income tax separately shall be entitled to a personal exemption of P9,000 each."
SECTION 2. The first paragraph of item (2)(A), paragraph (l) of Section 29 of the same Code, as amended, is hereby further amended to read as follows:
"(2) Additional exemption
"(A) Taxpayers with dependents. — A married individual or a head of family shall be allowed an additional exemption of Five thousand pesos (P5,000) for each dependent: Provided, 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 (P1,000) shall be allowed for each child who otherwise qualified as dependent prior to January 1, 1980: Provided, finally, That the additional exemption for dependents shall be claimed by only one of the spouses in the case of married individuals electing to compute their income tax liabilities separately." cd
SECTION 3. This Act shall take effect upon its approval.
Approved: December 19, 1991
Published in Malaya on January 14, 1992. Published in the Official Gazette, Vol. 88 No. 5 page 502 on February 3, 1992.
Cite This Law
Adjustment of Income Tax Exemptions, Republic Act No. 7167, Dec 19, 1991 (Philippines)
Adjustment of Income Tax Exemptions, Republic Act No. 7167 (Phil. 1991)
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