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January 15, 2009BIR RULING [SB-(003) 023-09]32 (B) (6) (a); DA-071-02Mr. Edmund R. Castillo31-A Venus Street, Congressional Subd. IIBanlat, Tandang SoraQuezon CitySir :This refers to your letter dated August 28, 2007 requesting for an opinion as to whether or not your separation pay benefits are exempt from income tax and consequently from withholding tax pursuant to Section 32 (B) (6) (a) of the Tax Code of 1997. IaAHCEIt is represented that you were scheduled to permanently resign/retire from your present employer, Pharma Dynamic, Inc. with business address at PDI Building, 71 Maysilo Street, Mandaluyong City, effective January 16, 2008; that the reason is that you and your wife, together with your youngest son are migrating to Canada; that your application for permanent residency has been approved and you were slated to leave come April or May 2008; that you are fifty one (51) years of age and have served the company for twenty two (22) continuous years, meeting the requirements of RA 4917 that provides for at least 50 years of age and ten years of...