BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Jan 2, 1970
Full text
January 2, 1970 Mr. B. D. Carbonell National Power Corporation P.O. Box No. 2123, Manila S i r : This refers to your letter dated April 11, 1969 requesting legal opinion on a query stated as follows: "Please inform if the gratuity received by employees with 20 years of service in a Government Office is taxable or not. This gratuity is equivalent to one (1) month pay for every year of service but not more than 24 months." In reply thereto, I have the honor to inform you that pursuant to Sections 14 and 25 (c) of Commonwealth Act No. 186 as amended, all benefits granted by the Government Service Insurance System shall be exempt from all types of taxes. Accordingly, gratuity benefits received by a member of the system under Republic Act No. 660 and Republic Act No. 4968 are not subject to tax. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue
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