(Letterhead)

(Date)
________________
________________
________________

Re: Request for Certificate of Tax Exemption

Gentlemen,

As the COVID-19 pandemic situation has tremendously hit the financial status and
capability of ____________. (the “Company”), Company management was constrained
to recently implement a Retrenchment Program, which was necessary to prevent business
losses.
 
Accordingly, the Company filed a written Notice of retrenchment with the Department of
Labor and Employment (DOLE) and served formal Notices to the employees concerned
last 1 June 2020, and the termination due to retrenchment of the affected employees will
take effect on 1 July 2020, thirty (30) days after written notice to DOLE and the
employees. In compliance with the rules and regulation of the Labor Code, the
Company will provide all separation benefits to each employee affected by the
Retrenchment Program. A list of all affected employees is attached hereto for your
reference, with their complete details and TIN Numbers.

Pursuant to Section 32 (B)(6)(b) of the Tax Code of 1997, as amended, any amount
received by an official or employee or by his heirs from the employer as a consequence
of separation of such official or employee from the service of the employer because of
death, sickness or other physical disability or for causes beyond control of the said
official or employee shall be excluded from the gross income and shall be exempt from
income tax regardless of age or length of service.
 
Under Revenue Memorandum Order No. 66-2016, “In order to facilitate the
processing of requests for tax exemption of separation benefits received by
officials/employees or his/her heirs as a result of their separation from employment due
to death, sickness or other physical disability or for any cause beyond the control of
said officials or employees, regardless of age and length of service, the following
documents are required to be submitted to the Revenue District Office (RDO) where the
employer is originally registered, to support such request:
(1) Letter request from the Official/Employee (or by his heirs) or the Employer for
the tax exemption of separation benefits from income and withholding tax;
x x x”

In this regard and in support of its employees, the Company hereby formally requests for
the issuance of a Certificate of Exemption for all Separation Benefits from income tax
and withholding tax on compensation for the Company employees terminated under the
Retrenchment Program. Such exemption will greatly benefit our employees who have
been displaced.

We have attached the following documents for your reference:

1. Board Resolution covering the approval of the Retrenchment Program.

2. A list of Company employees terminated due to the retrenchment program with their
details and TIN Numbers.
3. Copies of the Notices served to the employees
4. A copy of the Notice to DOLE (DOLE Establishment Report )

We hope for your kind consideration on this request.    

(“Company Name”).

By:

____________________