The additional exemptions in taxation refer to minor children and other dependents of single or married taxpayer. The exemption rate was P50,000 for each dependent but not exceeding four. But the exemption has been doubly compensated by the upgrade of personal exemption to P250,000 for each individual regardless if he or she is single or married under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
The TRAIN repealed Section 35 of the Tax Code which granted the additional exemption. Revenue Memorandum Circular 42-2018 to announce the suspension of the Update of Exemption of Employees (UEE) Batch File Validation.
Section 35 of the National Internal Revenue Code of 1997 as amended, which allowed personal and additional exemptions for an individual taxpayer has been repealed by Section 12 of TRAIN Law effective January 1,2018.
Thus, taxpayers with dependents are no longer required to update their additional exemptions by tiling the BIR Form No. 2305 - Certificate of Update of Exemption and of Employers and Employee's information.
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