Exemption from Income Tax

June 16, 1980 BIR RULING NO. 074-80 Warner Bros. (F.E.), Inc. PPL Bldg., U.N. Avenue Ermita, Manila Attention: Mr . Alfredo C . de Jesus Office Manager Gentlemen : In reply to your letter dated March 9, 1979, I have the honor to inform you that pursuant to Section 29(b)(7)(B) of the Tax Code of 1977, as amended, any amount received by an official or employee or by his heirs from his employer as a consequence of separation by such official or employee from the service of the employer due to death, sickness or other physical disability or for any cause beyond the control of the said official or employee is exempt from income tax, in which case, the same need not be declared as part of the recipient's gross income for income tax purposes. Consequently, said amount is not subject to the withholding tax prescribed by Chapter XI, Title II of the Tax Code as implemented by Revenue Regulations No. V-8 as last amended by Revenue Regulations No. 2-79. cdti Very truly yours, RUBEN B. ANCHETA Acting Commissioner