Death is certain and so is tax. This is why it is important to know what should be taxed and what should not. The following are considered exempted from taxes:
- All revenues, income, assets of non-stock and non-profit educational institutions used directly, actually and exclusively for all grants and educational purposes, donations, contributions, endowments used directly, exclusively for educational purposes as stated on Article 14 Section 4.
- Charitable institutions, convents, mosques, churches, non-profit lands, buildings, cemeteries and improvements exclusively, actually, and directly used for charitable, educational and religious purposes.
Basic Personal and Additional Tax Exemptions According to R.A 7167
(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."
Sec. 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.
For additional information about filing for tax exemption, visit Bureau of Internal Revenue's website.
