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Feb 28, 2024 · Generally, retirement benefits received by an employee pursuant to Republic Act (RA) No. 7641 and RA No. 4917 are tax-exempt, subject to certain conditions.
Apr 14, 2024 · Part-time workers are entitled to retirement pay provided they meet the requirements stated earlier. The benefit shall be computed pro rata to their salary and related benefits. (Labor Code, Article 287; DOLE-BWC Handbook, pp. 49-50)
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Are retirement benefits taxable in the Philippines?
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Jun 27, 2018 · Under the Tax Code, as amended, a retirement benefit is considered part of the compensation income of the income earner, since it is paid by reason of an employer-employee relationship. However, a retirement benefit is one of the exclusions from gross income, and thus, exempt from income tax.
In this particular situation, all income and other benefits received by the employee beyond the age of 65 shall be considered compensation income subject to tax and, consequently, to withholding tax.
Oct 1, 2020 · Under Bayanihan II, in a similar case where an employee who is laid off receives his vested retirement pay as part of his separation package, the employee should be able to enjoy a tax exemption on both payments without question. The tax-free treatment of early retirement benefits should no longer be in question.
AN ACT AMENDING ARTICLE 287 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, BY PROVIDING FOR RETIREMENT PAY TO QUALIFIED PRIVATE SECTOR EMPLOYEES IN THE ABSENCE OF ANY RETIREMENT PLAN IN THE ESTABLISHMENT.
Dec 9, 2020 · Section 32(B)(6)(a) of the Tax Code provides that retirement benefits received under the mandatory provisions of the Labor Code, such as reaching 60 years old but not more than 65 years and has served for at least five years, are tax-exempt.
