February 26, 2009
BIR RULING [SB-(018) 156-09]
32 (B) (6) (b); SB-69-98
Digital Media Exchange, Inc.
8th Floor Net One Center, 26th Street corner 3rd Avenue
Bonifacio Global City, Taguig City
Attention: Mr. Scott Countryman
CEO
Gentlemen :
This refers to your letter dated August 19, 2008 requesting for a ruling as to whether or not the separation pay to be received by the employees due to retrenchment is exempt from income tax and consequently from the withholding tax pursuant to Section 32 (B) (6) (b) of the Tax Code of 1997. acEHSI
It is represented that Digital Media Exchange, Inc., an online games publisher, will file for a retrenchment program with the Department of Labor and Employment (DOLE) due to serious financial losses incurred in the past year; that with the aging current titles in an increasingly competitive gaming industry, your revenues have been steadily declining to the point that your publishing business has been operating at a loss for the past several months; that while you have taken other measures to cut costs and reduce your operating expenses, these are not enough and...
