Income Tax Exemption for AFP US Service Members

Section 1 exempts covered Army of the Philippines personnel from income tax on specified earnings derived from service with the United States Armed Forces.
Section 2 authorizes refunds for income tax amounts previously collected on income that the Act exempts.
Section 3 extends applicability to personnel who were inducted into the United States Armed Forces in the Far East, and to duly recognized guerrillas.
Section 1 expressly includes beneficiaries within the exemption.

Section 1 covers officers and enlisted men of the Army of the Philippines who served in the Armed Forces of the United States, including their beneficiaries.
Section 1 covers income consisting of compensation, insurance, and maintenance and support allowances earned by virtue of such service.
Section 3 applies to Army personnel who were inducted into the United States Armed Forces in the Far East, including their beneficiaries.
Section 3 applies to guerrillas duly recognized, whether collectively or individually, including their beneficiaries.

Section 1 limits the exemption to the taxable years Nineteen Hundred and Forty-two, Nineteen Hundred and Forty-three, Nineteen Hundred and Forty-four, and Nineteen Hundred and Forty-five.
Section 1 grants that income so earned is exempt regardless of the date of receipt thereof.
Section 1 provides that the exemption applies to income earned by virtue of the covered service.
Section 1 provides that the tax exemption applies to the Act’s covered income categories: compensation, insurance, and maintenance and support allowances.

Section 1 states that the filing of returns for the exempt income is not required for covered individuals.

Section 2 authorizes the refund of any amount heretofore collected as income tax on income exempted under the Act.
Section 2 requires a proper application for the refund.
Section 2 directs that the application must be filed with the Collector of Internal Revenue.
Section 2 provides that the refund is for the individual claiming exemption.

Section 3 applies the Act to officers and enlisted men inducted into the United States Armed Forces in the Far East.
Section 3 applies the Act to guerrillas duly recognized, whether collectively or individually.
Section 3 extends the benefit to beneficiaries of covered inducted personnel and guerrillas.
Section 3 expressly ties applicability to the service context stated: induction into the United States Armed Forces in the Far East and duly recognized guerrilla service.