BIR Ruling No. 450-2021

vVLMjV REPUBLIC OF THE PHILIPPINES IllilV/tq JdEPARTMENT of FINANCE BUREAU OF INTERNAL REVENUE Quezon City Sections 32(B)(6)(a)and 60(B)of the Tax Code of 1997, as amended BIR Ruling Nos.012-11,055-12 and 193-16 Cl- lAO- 7 u 2 DEC f) '1 -lu. J POINTWEST TECHNOLOGIE^ CORPORATION 12 Floor,Citibank Center,8741 paseo De Roxas, Makati City, Metro Manila, Philippines 1226 Attention;! Ma.Josefina M.Reves I Executive Director j Administration and Finance Gentlemen: j This refers to your letter|dated October 12, 2021 requesting on behalf of Pointwest Technologies Corporation ("PTC") and Pointwest Innovations Corporation ("PIC") for confirmation of your opinion thkt: 1. rhe tollowing do not atfect the qualification ofthe Plan as a reasonable retirement benefit plan under Section 32(B)(6)(a)ofthe National Internal Revenue Code of 1997,as amended (Tax Code): a. Adoption and parti([ipation of other affiliated and subsidiary companies of PTC and PIC to the Pointwe^ Multiemployer Employees' Retirement Plan(the"Plan"); Termination ofthe Jparticipation ofa Participating Company in the Plan,provided the conditions provided in the Retirement Plan Rules are complied with; and c. Transfer of Plan jssets and actuarially determined liabilities from the Plan of a Participating Compjany to the Plan ofanother Participating Company,in case oftransfer ofemployees/memf)ers; however,the conditions under Section 32(B)(6)(a)ofthe Tax Code, would be Applicable in determining whether the retirement benefits of the transferred employjees/members are exempt from income tax under said provision of the Tax Code; 2. The retirement benefitjs to be received by a qualified employee-member of the Plan shall continue to be exemptilrom income tax provided the two(2)conditions set forth by Section 32(B)(6)(a)ofthe Fa?^ Code are satisfied,to wit:(1)the employee had been in the service ofthe same employerjfor at least ten(10)years; and(2)he/she is already fifty(50)years old at the time of rctibment. The income of the Plan's fund from its investments shall continue to be exempt from income tax and withholding tax, and the contributions of the