IN light of the K to 12 curriculum a member of the House of Representatives said that dependents of a taxpayer should be aged 23 and below.
Paranaque Rep. Eric Olivarez said there is a need to adjust the age of dependents because primary education in the country has been lengthened with two more years added.
At present the age bracket of household members considered as dependents of a taxpayer is 21 and below.
Olivarez said a student affected by the K to 12 Law is now expected to complete his or her education at age 23 on the average, instead of 21.
Consequently the income earners in the family would have to sustain the education of their children or immediate relatives, like a brother or a sister, a little longer, or two years longer than before according to Olivarez.
“Because of this, it is only proper to amend the sections of the National Internal Revenue Code (NIRC) which provide for the age limitation of household members who may qualify as dependents for purposes of availing of tax exemptions, if only to avoid defeating the purpose and wisdom of the above-cited specific provision of the NIRC,” Olivarez said.
The lawmaker said the NIRC provides certain tax exemptions to income-earning individuals to avoid unreasonably burdening a person who has to provide for a number of household members who are unable to support themselves because they are still studying and therefore unable to work and support herself and/ or the person being supported by the income earner is physically or mentally handicapped from providing for himself.
Olivarez proposed amendments to Section 35 items (A) and (B) of the NIRC, as amended by Republic Act 9504 titled Allowance of Personal Exemption for Individual Taxpayer.
The proposed amendments provides fo a basic personal exemption amounting to P50,000 for each individual taxpayer.
Moreover, there shall be allowed an additional exemption of P25,000 for each dependent not exceeding four. The additional exemption for dependent shall be claimed by only one of the spouses in the case of married individuals.
In the case of legally separated spouses, only the spouse who has custody of the child or children may claim additional exemptions. The total amount of additional exemptions that may be claimed by both shall not exceed the maximum additional exemptions herein allowed.
For additional exemption, a married individual or head of the family shall be allowed an additional exemption of P5,000 for each dependent. The total number of dependents for which additional exemptions may be claimed shall not exceed four dependents.
If the taxpayer marries or should have additional dependents, the taxpayer may claim the corresponding additional exemption, as the case may be, in full for such year.
If the spouse or any of the dependents dies or if any of such dependents marries, becomes 23 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 23 years old or became gainfully employed at the close of such year.