Taxability or Non-Taxability of Benefits Received from the Early Retirement Program (ERP)
BIR Ruling No. 114-89 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 29, 1989
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May 29, 1989 BIR RULING NO. 114-89 28 (b) (7) (F) 000-00 114-89 Gentlemen : This refers to your letter dated March 8, 1989 requesting in effect a ruling on the taxability or non-taxability of benefits received from the Early Retirement Program (ERP) under R.A. No. 6683. In reply, please be informed that under Section 28(b)(7)(F) of the Tax Code, as "amended benefits received from the GSIS and the 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 same Code. Accordingly, benefits received from the Early Retirement Program under R.A. No. 6683 are not subject to income tax. However, the tax exemption does not include payments for salary and cash equivalent of accumulated vacation or sick leaves, if any. cd Very truly yours, (SGD.) JOSE U. ONG Commissioner
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