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February 16, 2009BIR RULING [SB-(011) 097-09]DA506-07Mr. Adriano M. DuluNo. 19 Dona Maria StreetDon Jose Heights SubdivisionFairview, Quezon CitySir :This refers to your letter dated December 8, 2008 requesting for an opinion as to whether or not the retirement benefits to be paid to you by Machinebanks Corporation is not subject to income tax and consequently to withholding tax. It is represented that you have been connected with the Machinebanks Corporation for the past 33 years and holding the position of industrial sales group manager; that the said company has no retirement plan duly approved by the BIR as a reasonable retirement benefit plan under Section 32 (B) (6) (a) of the Tax Code of 1997; that it has no Collective Bargaining Agreement (CBA) with its employees; and that since you are already 60 years old, you decided to retire from the company pursuant to Article 287 of the Labor Code.In reply thereto, please be informed that Section 32 (B) (6) (a) of the Tax Code of 1997 provides that retirement benefits received under Republic Act...