March 10, 2020
BIR RULING NO. OT-204-20
Sec. 32 (B) (6) (a), Tax Code; BIR Ruling No. 68-14
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Sir :
This refers to your undated letter received by this Office on December 6, 2019 requesting for re-evaluation and final determination of your case, in connection with BIR Ruling No. 545-2019 issued on October 1, 2019, exempting your retirement benefits from income tax.
It is represented that during the automatic transfer of your employment/payroll from National Transmission Corporation (TransCo) to National Grid Corporation of the Philippines (NGCP) in January 2019, by virtue of the Republic Act (RA) No. 9511 (EPIRA Law), you were not informed of the existence of NGCP Retirement Plan. Thus, you represented to this Office in your request letter dated May 28, 2019 that NGCP does not provide for a retirement plan or other agreement providing for the retirement benefits of its employees. Based on the said representation, this Office ruled in your favor and exempted your retirement benefits pursuant to Section 1 of RA No. 7641. NGCP refused to honor the aforementioned ruling on the ground that...
