April 17, 2009
BIR RULING [SB-(021) 264-09]
32 (B) (6) (b); DA-383-06
United Coconut Chemicals, Inc.
17th Floor, UCPB Bldg., Makati Avenue
Makati City
Attention: Dr. Carlito S. Puno
President & CEO
Gentlemen :
This refers to your letter dated March 30, 2009 requesting for a ruling that the separation benefits to be paid to the United Coconut Chemicals, Inc. (COCOCHEM) employees who will be resigning from service are exempt from income tax and consequently from the withholding tax pursuant to Section 32 (B) (6) (b) of the Tax Code of 1997.
It is represented that COCOCHEM is a corporation engaged in the manufacturing of oleochemical products that maintains a plant in Bauan, Batangas where a majority of its employees report therein; that because of financial losses it has been suffering for three (3) years now, the high cost of production and the effect of global recession to almost all of the oil industries in the Philippines, Management has recently decided with the approval of the Board of Directors to undertake temporary suspension of operations for a period of three (3) months commencing on...
