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- 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.
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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.
Jun 27, 2018 · However, if said conditions for the income-tax exemption are not met, the retirement benefit is taxable; and since the employer is constituted by law to be a withholding agent, it is charged to withhold and remit to the BIR the withholding taxes on its employees’ retirement benefits.
The retirement benefits received by any qualified retiring employees shall be exempt from income tax and, consequently, from withholding tax pursuant to RA No. 4917; The investment income derived from investing the retirement fund shall be exempt from income tax pursuant to Section 60(B) of the Tax Code; and
Nov 20, 2020 · If the company has no BIR-registered retirement plan, the retirement benefits provided to its retired employees is subject to income tax even if the retirement and payment thereof occurred during the covered period. Thus, the company shall be liable to withhold and remit the corresponding income tax due thereon.
retirement benefit provided by RA 7641, the employee must comply with the conditions of RA 4917 in order that his retirement benefits may be tax-exempt. BIR Ruling 234-13 emphasized that the age and length of service requirements under the Tax Code must be complied with to avail of the tax exemption on the retirement benefits. Based on
Feb 27, 2017 · Under RA 4917, retirement benefits paid to an employee will be tax exempt provided you meet the following requirements: (1) company has a BIR registered retirement plan, (2) the retiring employee is at least 50 years old with at least 10 years of service in the same company and (3) that the employee has not previously availed of a tax exempt ...
Oct 13, 2020 · The exemption of retirement benefits is not new. Section 32 (B) (6) (a) of the Tax Code, as amended, provides that retirement benefits are exclusions from gross income and exempt from tax. Exempt retirement benefits are (1) benefits received under Republic Act No. 7641 (Labor Code) and (2) benefits received in accordance with a reasonable ...
