WHEN SHOULD THE PERSONAL AND ADDITIONAL EXEMPTIONS BE CLAIMED?

Exemption, whether personal or additional, is only available to individual and not to any juridical person. Every individual taxpayer of the Republic of the Philippines, having a civil status of either single or married, may deduct from his gross income an amount of P 50,000 as personal exemption and for dependents not exceeding four, P25,000 each. To forcibly tax an income when there is a legal option to avoid or defer taxation is unfair and unacceptable. It is an honorable action to inform an individual taxpayer, whether earning pure compensation or engaged in business that the choices of claiming his exemptions can be made either at the beginning of the year or at the year end.

Thus unmarried Filipino having no dependents should not Based on Emelino T Maestros computation, individuals pay income tax if his gross income for specific tax year is may not have to pay withholding income tax for the next 4 either equal to or less than P 50,000. months, if he chooses that his exemptions shall be used in the beginning of the specific tax year while for those To answer the question When should the Personal and individuals deriving income from business may save 48,000 Additional Exemptions be claimed?, the BIR has crafted peso income tax. inconsistent regulations, viz; BIR has no business of encroaching the rights of individual 1. The exemptions of an individual earning pure taxpayers. Taxpayers right for self-determination should compensation are evenly apportioned within the always be strictly respected. Tax avoidance is allowed by tax year, and the laws of the State. So, if individual taxpayers in 2. The exemptions of an individual engaged business exercising their rights choose to use these exemptions in shall only be deducted from his gross income not the beginning of the specific tax year, the BIR should not on the first quarter but at the year end. be a hindrance. Individual taxpayers should not be denied These two conflicting procedures deprive and deny these in legally reducing their income taxes. individuals to enjoy the deferral of paying income taxes while at the expense of these individuals, the BIR enjoys The present regulations of the BIR that apportioned or the benefits of using these pre-matured tax collections. deferred the claim for these exemptions completely violated the basic law of the state RIGHT MAY BE WAIVED The legal doctrine solutio indebiti has been clearly and only the person in which right is granted can waive violated by the BIR when it employed the above-conflicting such right. And that waiver is not within the province of the procedures. BIR. Solutio indebiti means that no person (including the Mr. Emelino T. Maestro shall conduct PAYROLL Philippine government and of course, the BIR) shall enrich TAXATION AND DOCUMENTATION seminar. Please himself at the expense of others. register early because the seats are so limited. For details call 742-0382 and 439-3918 Personal and additional exemptions, as the terms connote, are personal in nature and scope and legal rights granted If the article is helpful, kindly share such to others either by the law of the State to every Filipino. through tweeter, facebook, email, or facsimile. Since, exemptions are classified as rights, to use or not use Thank you for reading this ETM-conviction. these rights are the sole choice of those in which these rights have been granted. And, of course, the choice of ETM is not only your Tax-shelter but also using these rights include when these rights shall be used. your lifesaver. To dictate when these exemptions shall be used is a misrepresentation and deceit, and an encroachment of right for self-determination.

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