February 4, 2009
BIR RULING [SB-(006) 067-09]
Sec. 32 (b) (6) (b); DA-386-07
Isabela II Electric Cooperative, Inc.
Alibagu, Ilagan, Isabela
Attention: Mr. Manolito G. Pablo
Lineman
Gentlemen :
This refers to your letter dated November 17, 2008 requesting for a ruling that the separation benefits due to physical disability are exempt from withholding tax.
It is represented that you are an employee of Isabela II Electric Cooperative, Inc. located at Alibagu, Ilagan, Isabela; that you have been employed with Isabela II Electric Cooperative, Inc. for the past 20 years; that a Medical Certificate issued by Col. William T. Yu, Medical Officer of Camp Melchor F. dela Cruz Station Hospital state that your are diagnosed to have Left Facial Hemiparesis; Bells Palsy R/O CVD Thrombosis; that considering your present health status, the chronicity of the illness make you unfit to resume work and were advised to stop working or opt for early retirement; and that you filed for optional retirement on October 10, 2008.
In reply, please be informed that pursuant to Section 32 (B) (6) (b) of the Tax Code of 1997, any...
