Republic Act (RA) 11494, or the “Bayanihan to Recover as One Act” (Bayanihan 2), which implements the government’s response and recovery interventions related to the Covid-19 pandemic, granted some tax relief and incentives to taxpayers. One of these incentives is an income tax exemption on retirement benefits, subject to certain conditions.
Section 5 of Bayanihan 2 granted another tax exemption on such benefits, particularly those received by officials and employees of private firms from June 5 to Dec. 31, 2020.