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October 15, 2009BIR RULING [SB-(046) 648-09]Section 32 (B) (6) (a); SB(034) 512-2009Mr. Edito F. BacodNo. 91 Kagawad Road, Area BBatasan Hills, Quezon CitySir :This refers to your letter dated September 17, 2009 requesting, in effect, for exemption from the payment of withholding tax on retirement/separation benefits. caADICIt is represented that you have been employed by Globesco, Inc. Upon completion of twenty three (23) years of service, you were automatically/compulsory retired on September 1, 2009 in accordance with Section 5 of Article XI of the collective bargaining agreement (CBA) between Globesco, Inc. and Globesco Free Workers Union:"Section 5. It is agreed between the parties that workers covered by this agreement shall be automatically or compulsory retired from work by the Company upon reaching sixty (60) years of age or upon completion of twenty three (23) years of continuous service to the Company. Said employee shall be paid the equivalent of thirty three (33) days basic pay for every year of service based on his current basic rate of pay."In reply, please be informed that Section 32...