Retirement Gratuity Received from the Ministry of Labor Exempt from Income Tax
BIR Ruling No. 078-84 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Apr 25, 1984
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April 25, 1984 BIR RULING NO. 078-84 29 (c) (7) (F)-000-00-078-84 S i r : This refers to your letter dated December 1, 1983 requesting a ruling as to whether or not the retirement gratuity as well as the money value of your terminal leave credits which you received from the Ministry of Labor are subject to income tax. In reply, I have the honor to inform you that pursuant to Section 29(c)(7)(F) of the Tax Code as amended, benefits received from the GSIS and the retirement gratuity received by government officials and employees are exempt from income tax. Such being the case, your retirement gratuity received from the Ministry of Labor is exempt from income tax. It is, however, understood that the tax exemption does not include payments for salary and cash equivalent of accumulated vacation and sick leaves, if any. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner
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