BIR Ruling

April 5, 1968 Mr. Casimiro Barawidan, Sr. 1852 Sandajes St. Pasay City S i r : This refers to your letter dated March 29, 1968 requesting a ruling based on a query stated as follows: "The undersigned is a retired employee receiving monthly pension from the EASTERN EXTN. A & C TELEGRAPH CO., LTD., 430 T. M. Kalaw St., Ermita, Manila. "I would like to know if the pension I received from January to June 1967 is exempted from income tax inasmuch as R. A. No. 4917 took effect on June 17, 1967." In reply thereto, I have the honor to inform you that inasmuch as you are already a retired employee before the enactment of R. A. No. 4917, you cannot avail of the exemption provisions of said law. This is for the reason that laws, as a rule, unless the contrary is expressed, have prospective application only. You are, therefore, subject to income tax on the retirement benefits you received either before or after the enactment of the law. Besides even if you retired after June 17, 1967, the exemption of your retirement benefits can only be determined after your employer shall have submitted to this Office its retirement plan and found to be reasonable. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue