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MARY JOY P. JUNIO, CPA

Notre Dame of Midsayap College

Midsayap, Cotabato

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Income Tax

of

Individuals

Individual taxpayers arenatural persons withincome derived withinthe territorial

jurisdiction of a taxingauthority.

These are classifiedas citizens and aliens.

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Under Section 1, Article IV of thePhilippine Constitution, a FilipinoCitizen is he who is/has:

a. Born with father and/or mother as

Filipino citizensb. Born before January 17, 1973 of

Filipino mother who electsPhilippine citizenship upon

reaching the age of majorityc. Acquired Philippine citizenship

after birth in accordance with thePhilippine laws.

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An alien is aforeign-born

person who is notqualified toacquire

Philippinecitizenship bybirth or after

birth.

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1. Resident Citizen is a Filipino citizen whostayed permanently in the Philippines orstayed outside the Philippines for less than183 days during the taxable year.

2. Nonresident Citizen is a Filipino citizenwho stayed outside the Philippines for 183days or more during the taxable year andhas established proof to the BIRCommissioner of his definite intention toreside outside the Philippines on apermanent basis as an immigrant oremployee.

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Classifications of Aliens1. Resident Aliens are persons who

are not

citizens of the Philippines but are residingwithin the Philippines including foreignindividuals who have stayed in thePhilippines for more than one year from

date of arrival.2. Nonresident Aliens are foreign individualswhose residences are not within thePhilippines:a. Those engaged in trade or business

within the Philippines (more than 180 days)b. Those not engaged in trade or business

within the Philippines (180 days or less)

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Special Taxpayers are

those who are taxed with

a 15% tax rate. This

applies to compensationincome derived within

by aliens or Filipino

citizen (not engaged in

trade or business in thePhilippines) with special

employment contracts.

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