Further Clarifications on the Retirement Benefits Exempt from Income Tax Pursuant to Republic Act No. 11494, or the Bayanihan to Recover as One Act, as Implemented under Revenue Regulations (RR) No. 29-2020

October 30, 2020REVENUE MEMORANDUM CIRCULAR NO. 120-20SUBJECT : Further Clarifications on the Retirement Benefits Exempt from Income Tax Pursuant to Republic Act No. 11494, or the Bayanihan to Recover as One Act, as Implemented under Revenue Regulations (RR) No. 29-2020   TO : All Internal Revenue Officers and Others Concerned This Circular is issued to clarify further the exemption from income tax of the retirement benefits received by employees of private firms from June 5, 2020 to December 31, 2020, particularly on the following questions: Q1. Employee A, fifty (50) years of age and with eight (8) years of service in Company B retired on June 15, 2020 and received the retirement benefits on August 31, 2020. Company B has a registered retirement plan with the BIR and the retirement benefits received by said employee is based on that plan. Are the retirement benefits received exempt from income tax?A1. Yes, although the employee did not meet one of the conditions, particularly on the length of service under the approved employees' retirement benefits plan, the received retirement...