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March 30, 2009BIR RULING [SB-(019) 240-09]Section 32 (B) (6) (b); SB-014-2007Narciso M. Balamiento62 J. Rizal StreetSta. Maria, BulacanSir :This refers to your letter dated March 09, 2009 requesting for a ruling that the separation benefits to be paid to you by reason of poor health condition are exempt from income tax pursuant to Section 32 (B) (6) (b) of the Tax Code of 1997, as amended. As represented, Mr. Narciso M. Balamiento was employed by Philippine International Trading Corporation (PITC) as Department Manager of the said corporation; that he was diagnosed to have Cystic Bronchiectasis and was advised to refrain from work due to his current condition; and that the Government Service Insurance System (GSIS) has approved its application for permanent total disability under Republic Act (R.A.) No. 8291.In reply, please be informed that pursuant to Section 32 (B) (6) (b) of the Tax Code of 1997, as amended, 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...