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July 1, 2009BIR RULING [SB-(030) 418-09]Section 32 (B) (6); SB(025)358-2009; SB(024)348-2009; SB(023)344-2009First Balfour, Inc.5F Benpres BuildingExchange Road cor. Meralco Ave.Ortigas Center, Pasig CityAttention: Ma. Lourdes Gloria M. RaymundoVice President & Chief Finance OfficerGentlemen :This refers to your letter dated May 28, 2009, requesting a confirmation of your opinion that the benefits that will be payable to the company's affected employees, pursuant to Section 32 (B) (6) (b) of the Tax Code of 1997, is exempt from income tax and consequently from withholding tax prescribed under Revenue Regulations No. 2-98 and that the redundancy package shall likewise be exempt from withholding tax. It is represented that FIRST BALFOUR, INC. (First Balfour, for short), is a domestic corporation engaged in the business of construction with principal office address at the 5th Floor Benpres Bldg. Meralco Avenue cor. Exchange Road, Ortigas Center, Pasig City; that the company has recently embarked in reorganizing its current organizational set-up by streamlining operations and centralizing certain functions to achieve higher employee efficiency and productivity, as well as to obtain cost-effectiveness; that under...