( 1 ) Retirement Benefits are the benefits that the employee receives as he/she retires from his/her employment with the company. It may be integrated in an employment contract or may be subject to a Collective Bargaining Agreement entered into between the employer and the employee. Absence of such, the provisions of the Labor Code and Retirement Pay Law governs.
( 2 ) For the retirement benefits to be exempt from the withholding tax, the taxpayer is burdened to prove the concurrence of the following conditions:
( 2.1 ) A reasonable private benefit plan is maintained by the employer;
( 2.2 ) The retiring official or employee has been in the service of the same employer for at least 10 years;
NOTE: OR as what may be stated in the Retirement Benefit Plan, provided that the benefits to be given to employee is not less than what is provided by existing laws.
( 2.3 ) The retiring official or employee is not less than 50 years of age at the time of his retirement; and
( 2.4 ) The benefit had been availed of only once during his/her employment.