WHEREAS,
the Government recognizes the need to assist low salaried employees to
meet the increasing costs of living; and
WHEREAS, the grant of special additional personal exemption will give
relief to the low-salaried employees and will enhance the equity and
the progressivity of the income tax system.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
the Philippines, by virtue of the powers vested in me by the
Constitution do hereby decree and order the following: chanroblesvirtualawlibrary
Section 1. Subparagraphs (a), (b) and (c) of
Section 23 of the National Internal Revenue Code of 1977, as
amended are hereby further amended to read as follows:cralaw:red
"Sec. 23 Amount of personnel exception allowable to
individuals. — For the purpose of the tax provided in this Title, there
shall be allowed in the nature of a deduction from the amount of gross
compensation income and/or net income, as the case may be, the
following personal exemptions:cralaw:red
"(a) Basic and special additional personal exemption
of single individuals. — The sum of Three Thousand Pesos (P3,000.00) as
basic personal exemption, if the person making the return is a single
or a married person judicially decreed as legally separated from his or
her spouse. If his gross compensation income does not exceed Twenty
Thousand Pesos (P20,000.00) a special additional personal exemption of
Four Thousand Pesos (P4,000.00) shall be allowed.
"(b) Basic and special additional personal exemptions
of married persons or heads of family. — The sum of Six Thousand Pesos
(P6,000.00), if the person making the return is a married man or a
married woman, or Four Thousand Five Hundred Pesos (P4,500.00) as basic
personal exemption, if the person making the return is the head of a
family: Provided, That only one basic exemption of Six Thousand Pesos
(P6,000.00), shall be made from the aggregate income of both husband
and wife when not legally separated. If his gross compensation income
does not exceed Twenty Thousand Pesos (P20,000.00), a special
additional personal exception of Four Thousand Pesos (P4,000.00) shall
be allowed. chanroblesvirtualawlibrary
"For the purpose of this Section, the term "head of family" means an
unmarried man or woman with one or both parents, or with one or more
brothers, sisters, or with one or more legitimate, recognized natural,
or adopted children living with and dependent upon him or her for their
chief support, where such brothers, sisters, or children are not
gainfully employed, or where such children are incapable of
self-support because of mental or physical defect.
"(c) Additional exemption for dependents. — The sum
of Two thousand Pesos (P2,000.00) 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,
unmarried, and not gainfully employed or if they are incapable of
self-support because of mental or physical defect. The additional
exemption their 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
(P1,000.00) shall be allowed for each child who otherwise qualified as
dependent prior to January 1, 1980.
"In the case of an individual who derives compensation and other
incomes, the amount of personal and additional exemptions granted under
this Section shall be allowed deducted first from the gross
compensation income. Any excess of the basic exemption allowed under
paragraphs (a) and (b) and additional exemption for dependents under
paragraph (c) hereof shall be deducted from other income." chanroblesvirtualawlibrary
Section 2. This Decree shall take effect immediately
upon its approval and shall cover compensation income earned in
calendar year 1983.
Done in the City of Manila,
this 6th day of July, in the year of Our Lord, nineteen hundred and
eighty-three.
|
