February 6, 2009
BIR RULING [SB-(008) 080-09]
Sec. 32 (b) (6) (b); DA-386-07
Pampanga II Electric Cooperative, Inc.
San Roque, Guagua, Pampanga
Attention: Ms. Lady Joan CVM Guillermo
HR Supervisor
Gentlemen :
This refers to your letter dated November 13, 2008 requesting in behalf of your employee, Conrado Guiao, for a ruling that the separation benefits due to physical disability are exempt from withholding tax.
It is represented that Conrado Guiao was an employee of Pampanga II Electric Cooperative, Inc. located at San Roque, Guagua, Pampanga; that a Medical Certificate issued by Karen Velasco, MD of Jose B. Lingad Memorial General Hospital state that he was diagnosed to have HTN II, controlled; DM2, controlled; Dyslipidemia; and that considering his present health status, the chronicity of the illness make him unfit to resume work and was advised to stop working.
In reply, please be informed that pursuant to Section 32 (B) (6) (b) of the Tax Code of 1997, any amount received by an official or employee or by his heirs from the employer as a consequence of separation of such official or employee from...
