Retirement Benefits Received by Reason of Retirement from Military Service Exempt from All Taxes

August 26, 1997 BIR RULING NO. 096-97 28 (b) (7) 000-000 096-97 Major Eliseo C. Ramiscal (Ret.) 588 Bernardo Avenue Lakandula, Mabalacat Pampanga S i r : This refers to your letter dated February 7, 1997 requesting for a ruling that the retirement benefits you received by reason of your retirement from military service are exempt from all taxes pursuant to Section 28(b)(7)(F) of the Tax Code, as amended. cdti It is represented that you have availed of the optional retirement from the AFP; that at the time of your retirement, you were 52 years old and has rendered 31 years and 3 months of service with the AFP; that it is the first time that you applied for exemption since you retired on February 25, 1994; and that you submitted a certification from the AFP Finance Center Headquarters and General Order No. 299 to support your application. In reply, please be informed that pursuant to Section 28(b)(7)(F), benefits received from the GSIS and retirement gratuity received by government officials and employees shall not be included in gross income and shall be exempt from taxation under Title II of the Tax Code, as amended. Such being the case, the retirement benefits you received from the AFP are exempt from income tax and consequently, from withholding tax as prescribed under Section 72, Chapter 10, Title II of the Tax Code, as amended by B.P. Blg. 135 and implemented by Revenue Regulations No. 6-82, as amended. cdt Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue