October 14, 2009
BIR RULING [SB-(044) 641-09]
32 (B) (6) (b); RR 2-98; SB-012-08
Mr. Efren I. Reyes
c/o Isabela II Electric Cooperative, Inc.
Alibagu, Ilagan, Isabela
Sir :
This refers to your letter dated July 13, 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 and consequently, from withholding tax pursuant to Section 32 (B) (6) (b) of the Tax Code of 1997, as amended.
It is represented that you are employed as a Lineman of the Isabela II Electric Cooperative, Inc., stationed at its Roxas Branch Office; that you were diagnosed to have Congestive Heart Failure, Hypertensive Cardiovascular Disease and Coronary Artery Disease; that you were advised by the City Health Physician of Cauayan City, Isabela to rest and refrain from heavy work as this would cause undue stress, thus, aggravating your precarious medical condition; and that due to your medical condition you were separated from the service effective June 25, 2009.
In reply, please be informed that pursuant to Section 32 (B) (6) (b)...
