Question & AnswerQ&A (BIR REVENUE MEMORANDUM ORDER NO. 36-2011)
The scope includes providing guidelines on the tax treatment of separation benefits received by officials and employees due to separation from employment because of death, sickness, or other physical disability, including the issuance of certificates of tax exemption, and it applies to Large Taxpayers Service as well.
Sections 244 and 245, and Section 32(B)(6)(b) of the National Internal Revenue Code of 1997, as amended, are referenced.
Documentary requirements must be submitted to the Revenue District Office (RDO) or the appropriate Large Taxpayers (LT) Office where the employer is originally registered.
The requesting official or employee, or his/her heirs in case of death, or the requesting employer can apply for the certificate.
If incomplete, a Notice to Comply will be issued. If after the prescribed period the documents are not submitted, a Notice of Archiving will be issued.
The Officer of the Day pre-evaluates the application using an Action Sheet-Checklist, and if complete, forwards it to the Revenue District Officer or LT Division Chief for thorough evaluation.
The Assistant Commissioner of Internal Revenue (ACIR) of the Large Taxpayers Service approves and signs the certificate if the application is in order.
Three copies are prepared: the original for the taxpayer, duplicate attached to the docket, and triplicate to ACIR, Legal Service. The Legal Division or Large Taxpayers Service must ensure the official dry seal is on the original and maintain a permanent record book of certificates issued, including the certificate number, applicant, and date of issue.
The order takes effect immediately upon its adoption on 28 September 2011.
Section 4, the Repealing Clause, states that all inconsistent issuances or portions thereof are revoked, repealed, or modified accordingly.