Republic Act No. 7167

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1

The first paragraph of item (1), paragraph (l) of Section 29 of the National Internal Revenue Code, as amended, is hereby further amended to read as follows:

"(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."

Section 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."

Section 3

This Act shall take effect upon its approval.

Approved: December 19, 1991.