February 4, 2009
BIR RULING [SB-(005) 066-09]
Sec. 32 (B) (6) (b); DA-505-06
Platon Martinez Flores San Pedro Leaño
Law Offices
6th Floor Tuscan Building, 114 V.A. Rufino Street
Legaspi Village
Makati City
Attention: Attys. Anthony Brett M. Abenir
and
Grace P. Quevedo-Panagasan
Gentlemen :
This refers to your letter dated October 31, 2008 requesting in behalf of your clients, ON Semiconductor Philippines, Inc. (ON Semi Phils.) and AMI Semiconductor Philippines, Inc. (AMI Phils.), for a ruling on the tax consequences relative to the separation benefits to be paid to its terminated employees by reason of redundancy.
The facts of the instant case are as follows:
ON Semi Phils. is engaged in the business of manufacturing, producing, assembling, processing, servicing, importing, exporting, buying, selling, distributing and marketing and/or contract manufacturing, or contractor for the manufacture, production, assembly, processing, servicing, import and export, of electronic products and the parts, components and accessories therefor, including specifically semiconductor devices of every type and description, especially integrated circuits and transistors now in existence or as may be subsequently be developed, and communications equipment and products of every kind whatsoever, especially hybrid...
