December 18, 2009
BIR RULING [SB-(054) 798-09]
32 (B) (6) (a); 050-98; DA-014-01; DA-156-03; DA-244-03; SB-057-2000
Ms. Carmencita L. Ramos
c/o Philippine Electricity Market Corporation
9/F Robinson's Equitable Tower
ADB Avenue, Ortigas Center, Pasig City
Madam :
This refers to your letter dated December 2, 2009 requesting for an opinion on whether or not the retirement benefits of Carmencita L. Ramos is subject to withholding tax.
It appears that Carmencita L. Ramos is employed by the Philippine Electricity Market Corporation (PEMC), a private corporation registered with the Securities and Exchange Commission (SEC). She had reached the mandatory retirement age of 65 year old and was due to retire on December 31, 2009. She served the company for more than five (5) years from November 1, 2004 to December 31, 2009. Since PEMC is not maintaining a reasonable private benefit plan approved by the Bureau of Internal Revenue (BIR) nor was there a Collective Bargaining Agreement (CBA) providing for retirement benefits of its employees, the management granted and approved the payment of Ms. Ramos' retirement benefits in accordance with the provisions of Republic Act...
