BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Mar 10, 1976
Full text
March 10, 1976 Mr. Antonio S. Payumo 413 Chateau de Makati F. Zobel Street Makati, Rizal S i r : In reply to your letter dated March 8, 1976, I have the honor to inform you that the termination pay equivalent to one (1) month salary for every year of service given by X Corporation to its employees is exempt from income tax, if as represented separation from the service is involuntary on their part and is not of their own making, pursuant to Section 4(f) of Revenue Regulations No. 1-68 implementing Republic Act No. 4917. However, unexpected accrued vacations leaves at termination date are subject to income tax. aisadc Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.