BIR Ruling No. 492-2017

REPIBLNGOY THF PHLIPPINES

BUREAU OE INTERNAL REVENUE DEPARIMENt OF FInANGE Uuezon (ity

Certificate of Tax Exemption No.

42-X1

CERTIFICATE OF TAX EXEMPTION

issued to

1. JEAN M.ANGELES 2 3 "VIANNEY M. MARQUEZ MANUEL R. DINEROS JR. Brgy.. San Isidro, Lipa City. Campo Verde Subd.. LiMA Technotogy Center. Malvar. Batangas Sto. Nino Villa de Lipa, Sabang. Lipa City 4. MAURO M. RODRIGUEZ Rosewood Subd.. Brgy. Bugtong, Lipa City

Square Business Loop, LiMA Technology Center, Lipa-Malvar Batangas have above-named taxpayers or by their heirs from the employer as a consequence of separation from thc service of the cmployer regardless of age or length of scrvicc. shall be excluded from their gross income and shall be cxempt from taxation pursuant to Section 32(B)(6)(b) of the 1997 Tax Code, as amcnded. Likewise. the separation benefits shall be exempted from withholding tax as prescribed by Section 79 of the Revenue Regulations No. 6-2001 and 12-2001. proven to have been separated from the service of the employer because of REDUNDANCY, a cause beyond their control. hence, the amount received by the 1997 Tax Code. as implemented by Revenue Regulations No. 2-98. as amended by UTILITIES CORPORATION, with principal office address at Bldg. B. LiMA This certifies that the above-named taxpayers, cmpioyed with LIMA

of said leave credits. terminal pay, i.e.. commutation and payment of monetized unused vacation leave consequently to the withholding tax. Conversely. the cash equivalent of vacation leave exceeding ten (10) days is subject to tax. However. this same principle cannot apply to SICK leave credits since an employee must actually go on sick leave to be ablc to avail credits not exceeding ten (10) days during the year are not subject to income tax and Moreover. pursuant to Section 2.78.1(A)(7) of RR 2-98, as amended, the

the separated employees" salaries and the payment of the 13th month pay and other benefits in excess of the Php (A)(7) of RR 2-98, as amended. It is. however. understood that this exemption does not include the payment of t threshold under Section 2.78.1 (A)(3)(a) and

ascertains that the facts are different. then this Certificate shall be considered null and documents as represented and submitted. However, if upon investigation. the BIR void. This Certificate of Tax Exemption is being issued on the basis of the facts and

Issued this. day of OCT 2 3 2017

K-1-RFR Commissioner of Internal Revenue CAESAR R. DULAY Q 10132

1 as amended by Revenue Regulations No. 3-2015 dated March 13, 2015