BIR Ruling No. 200-83

November 15, 1983 BIR RULING NO. 200-83 Gentlemen : In reply to your letter dated November 11, 1983, I have the honor to inform you that pursuant to Section 29(c)(7)(B) of the Tax Code as amended, any amount received by an official or employee or by his heirs from his employer as a consequence of separation of 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 taxes regardless of age or length of service. Such being the case, any and all amounts to be received by Ms. Lydia Mandane from the Philippine Commercial and Industrial Bank as a result of her separation from the service of the Bank due to sickness effective October 1, 1983 are exempt from all taxes and consequently, from withholding tax prescribed by Section 91, Chapter XI, Title II of the Tax Code, as amended by Batas Pambansa Blg. 135 and implemented by Revenue Regulations No. 6-82 dated October 1, 1982. It is however, understood that this tax exemption does not include the Bank's payment for the salary and cash equivalent of accumulated vacation and sick leaves if any of Ms. Mandane. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue