BIR REVENUE MEMORANDUM CIRCULAR NO. 22-2009

: It clarifies the allowable claims for personal and additional exemptions and the Optional Standard Deduction (OSD) pursuant to Revenue Regulations Nos. 10-2008 and 16-2008, respectively.
: Republic Act No. 9504 was approved on June 17, 2008.
: No, the increased personal and additional exemptions shall be apportioned for 2008 under the rules prescribed in Revenue Regulation No. 10-2008.
: They are those amounts presented at the back of the new Annual Income Tax Return for Self-Employed Individuals, Estates and Trusts (BIR Form 1701-July 2008 version).
: For January to June 2008, individuals can claim an OSD of only 10% of their gross income.
: A maximum of 40% of gross sales or gross receipts, net of returns, discounts, and allowances.
: The total OSD shall be computed as 10% of 50% of gross income plus 40% of 50% of gross sales or receipts.
: The 40% OSD applies only for the period beginning July 1, 2008, while the period before this continues to use itemized deductions.
: Taxpayers have until July 15, 2009, to amend their returns and pay the deficiency basic income tax without penalties.
: Under Section 204(B) of the 1997 Tax Code, as amended.