RMO No. 36-2011: Amends certain provisions of RMO No. 26-2011 re: guidelines in the tax treatment of separation benefits received by officials and employees on account of their separation from employment due to death, sickness or other physical disability and the issuance of Certificate of Tax Exemption from Income Tax and from the Withholding Tax

Key points

1. Where to file. The official, employee or heirs, or the employer, submit the documentary requirements to the RDO or the appropriate LT Office where the employer is originally registered.
2. Large Taxpayers Service cases. For taxpayers under the Large Taxpayers Service, the application is signed by the ACIR, LTS if found in order. Otherwise it is returned to the LT Office with a memorandum of review findings and evaluation.
3. Certificate of Tax Exemption. The Legal Division of the Revenue Region or the LTS prepares the Certificate in three (3) copies. The signed original must bear the official dry seal of the BIR before release.
4. Record book. Those offices keep a permanent record book listing the Certificate number, applicant or requesting taxpayer and date of issue in sequence.

Who is affected

• Officials and employees separated due to death, sickness or physical disability, and their heirs
• Employers
• Taxpayers under the Large Taxpayers Service