Title
Amendment on tax exemption for separation benefits
Law
Bir Revenue Memorandum Order No. 36-2011
Decision Date
Sep 28, 2011
This memorandum amends guidelines for the tax treatment of separation benefits for employees who leave due to death, sickness, or disability, streamlining the process for obtaining tax exemption certificates from the Bureau of Internal Revenue.

Documentary Requirements for Tax Exemption Requests

  • Required documents to be submitted to the Revenue District Office (RDO) or appropriate Large Taxpayers (LT) Office
  • Applies to officials/employees or their heirs separated from employment for specified reasons
  • Facilitates processing of tax exemption requests regardless of age or length of service

Processing Requests for Tax Exemption Certificates

Application and Pre-evaluation

  • Submission of complete documentary requirements to RDO or LT Office where employer is registered
  • Officer of the Day pre-evaluates application using Action Sheet-Checklist (Annex B)
  • If complete, forwarded to Revenue District Officer or LT Division Chief for detailed evaluation
  • If incomplete, Notice to Comply issued; failure to comply results in Notice of Archiving
  • Evaluation and certificate preparation for Large Taxpayers done by concerned LT Office

Review and Approval

  • Regional Director or Assistant Commissioner of Internal Revenue (ACIR) Large Taxpayers Service reviews and approves
  • ACIR signs certificate if compliant; otherwise, application returned with review memorandum

Issuance of Certificates

  • Legal Division or Large Taxpayers Service prepares three copies: original (taxpayer), duplicate (docket), triplicate (ACIR, Legal Service)
  • Certificates must bear official dry seal of the Bureau before release
  • Permanent record book maintained for certificate tracking (number, taxpayer, date)

Repealing Clause

  • All inconsistent issuances or provisions are repealed, revoked, or modified accordingly

Effectivity

  • Order takes immediate effect upon promulgation on 28 September 2011

Key Legal Concepts

  • Integration of Large Taxpayers Service in process and evaluation
  • Ensuring proper documentation for tax-exempt separation benefits
  • Defined authority in evaluation and issuance of tax exemption certificates
  • Procedural safeguards with Notices to Comply and Archiving for incomplete submissions
  • Formal issuance and tracking to ensure validity and transparency

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