Dependents for Additional Exemption:
|Dependents for whom a taxpayer may claim additional exemption:|
|2.||Illegitimate children (recognized); and|
|1.||Must be living with the taxpayer; and|
|2.||Must be dependent upon the taxpayer for chief support.|
|3.||Not more than 21 years of age or regardless of age but physically or|
|5.||Not gainfully employed.|
Rules on Change of Status:
1.If taxpayer marries or should have additional dependents during the taxable year, the taxpayer may claim the corresponding personal exemption in full for such year.
2. If the taxpayer dies during the taxable year, his estate may still claim the personal and additional exemptions for himself and his dependents as if he died at the close of such year.
3. If the spouse or any of the dependents dies or if any of such dependents marries, becomes twenty-one years old or becomes gainfully employed during the taxable year, the taxpayer may still claim the same exemptions as if the spouse or any of the dependents died, or as if such dependents married, became twenty-one years old or became gainfully employed at the close of such year.
Personal exemptions allowed to non-resident aliens engaged in trade, business or exercise of profession in the Philippines;
- The foreign country of which the NRA ETB is a subject or citizen has an income tax law;
- The income tax law of his country allows personal exemptions to citizens of the Phil. not residing therein; and
- The NRA ETB files a true and accurate return of his income from all sources within the Phil.
The amount equal to the exemptions allowed by the income tax law in t country of which the NRA ETB is a subject to citizens of the Phil. not residi therein but not to exceed the amount fixed as exemptions (basic person exemption and additional exemption for qualified dependent children) f citizens or residents of the Phil.
JONATHAN RUIZ CPA, MIB