BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Jun 18, 1968
Full text
June 18, 1968 Mr. J. H. Panganiban National Development Company Calle Pureza, Sta. Mesa Manila S i r : This refers to your letter dated June 13, 1968 requesting legal opinion on a query stated as follows: "In view of the several inquiries received from the personnel of this Company, we would like to solicit your kind assistance as to whether the amount of gratuity benefits that an employee, who is a member of the GSIS, may receive under either the compulsory retirement law (RA 660) at the age of 65 years or the Optional Retirement Law (RA 4968) is taxable or not." In reply thereto, I have the honor to inform you that pursuant to Section 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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