BIR Ruling [DA-372-00]

October 25, 2000 BIR RULING [DA-372-00] 32 (B) (6) (a) ERP 022-98 Valerio Ong Costuna & Saavedra 18/F Salcedo Towers 169 H.V. De La Costa Street Salcedo Village, Makati City Attention: Atty. Aileen Paulette P. Saavedra Gentlemen : This refers to BIR Ruling No. ERP-022-98 dated May 19, 1998 relative to the second sentence of the first paragraph of page two (2) which reads: "In view thereof, this Office finds the International Exchange Bank Employees' Non-Contributory Retirement Plan to be "a reasonable retirement benefit plan" within the contemplation of Section 32(B)(6)(a) of the Tax Code of 1997. Accordingly, the retirement benefits to be received by the employee-members shall be exempt from income tax; and the contributions of the company to the retirement fund are deductible from its gross in some." The said ruling, however, inadvertently omitted the phrase ". . . all taxes; the income of the Trust Fund from its investments are exempt . . .". Thus, the second sentence of the first paragraph of page two (2) should read as follows: "In view thereof, this Office finds the International Exchange Bank Employees' Non-Contributory Retirement Plan to be "a reasonable retirement benefit plan" within the contemplation of Section 32(B)(6)(a) of the Tax Code of 1997. Accordingly, the retirement benefits to be received by the employee-members shall be exempt from all taxes; the income of the Trust Fund from its investments are exempt from income tax; and the contributions of the company to the retirement fund are deductible from its gross income." TECIHD This ruling modifies BIR Ruling No. ERP-022-98 dated May 19, 1998. Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal and Inspection Group