BIR Ruling [DA-041-03]
BIR Ruling [DA-041-03] • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Feb 10, 2003
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February 10, 2003 BIR RULING [DA-041-03] Alba Romeo & Co. 7/F Multinational Bancorporation Centre 6805 Ayala Avenue Makati City Attention: Atty. Nefrie B. Abat Gentlemen : This refers to your letter dated November 22, 2002 requesting for a ruling as to whether or not the retirement benefits given under RA 7641, otherwise known as the Labor Code of the Philippines, by the Nautical Filipino Development is exempt from income tax and consequently from withholding tax. In reply thereto, please be informed that pursuant to Section 32(B)(6)(a) of the Tax Code of 1997 retirement benefits received under Republic Act No. 7641 shall not be included in the gross income and therefore not forming part of the taxable income. Accordingly, the retirement benefits to be paid by the Nautical Filipino Development under RA No. 7641 are not subject to income tax and consequently, to withholding tax prescribed by Section 79, Chapter XIII, Title II of the Tax Code of 1997. ( BIR Ruling No. 050-98 dated April 27, 1998 ) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. DTCAES Very truly yours, (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service
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