October 9, 2009
BIR RULING [SB-(043) 633-09]
32 (B) (6) (b); DA-291-92
Marilou L. Escobido
174 Sta. Lucia Street
San Luis, Pampanga
Madame :
This refers to your letter dated May 28, 2009 requesting for exemption from the payment of income tax, and consequently from the withholding thereof, the separation benefits to be paid to you by MANILA PAVILLION HOTEL.
It is represented that you have been working for MANILA PAVILLION HOTEL for the past 19 years as linen attendant. However, due to health reason, you were constrained to terminate your employment with MANILA PAVILLION HOTEL. The medical certificate duly issued by your attending physician Dra. Victoria L. Carlos disclosed that you are suffering from Acute Myelogenous Leukemia.
In reply thereto, under Section 32 (B) (6) (b) of the Tax Code, as amended, any amount received by an official or employee or by his heirs from his employer as a consequence of separation of such official or employee from the service of the employer due to death, sickness or other physical disability or for any cause beyond the control of the said official...
