ANNEX “A-1”

Quezon City

CHECKLIST OF REQUIREMENTS
(FOR TAX EXEMPTION APPLICATION OF SEPARATION BENEFITS
UNDER SECTION 32 (B)(6)(b) OF THE NIRC, AS AMENDED
DUE TO INSTALLATION OF LABOR-SAVING DEVICES)

 Submitted X Not Submitted N/A

Not Applicable

Document Remarks
1. Application letter stating the factual and legal basis for tax
exemption
2. Written notice to the employee and the appropriate
Regional Office of the Department of Labor and
Employment (DOLE) at least thirty (30) days before the
effectivity of termination, specifying the ground for
termination
3. Board resolution, in case of a juridical entity, or sworn
affidavit to be executed by the owner, in case of a sole
proprietor, stating the following:

i. That there has been an introduction of machinery,

equipment or other devices, with brief description of
the use of said machinery, equipment or device;
ii. That the introduction of the machinery, equipment or
other device has been done in good faith and for
valid reason;
iii. That there is no other option available to the
employer than the introduction of machinery,
equipment or other device; and
iv. That the selection of employees to be terminated has
been made in accordance with a fair and reasonable
criteria.

Other documents submitted:

Instruction: Please complete and submit the foregoing documentary requirements to the
Revenue District Office (RDO) having jurisdiction over the principal place of business of
the employer for processing of the tax exemption confirmation.