SEPARATION PAY

good pm po to all ask lang po about my separation pay. subject po ba for TAX ito? or hindi... my previous employer po nagdeduct sken ng TAX sa separation pay ko... sabe ng HR my TAX daw po. pero my nabasa ako s net na hndi po ito taxable... ano po b ang totoo? sana po matulungan nyo po ako...



thank you

Depende po.

If yung reason sa pagtanggal sayo is "within your control", which means ikaw yung dahilan kaya natanggal ka and consequently babayaran ka pa ng separation pay, then, THAT SEPARATION pay is subject to tax, taxable.

On the otherhand, If yung reason sa pagtanggal sayo is "beyond your control"(due to sickness, death, physical disability, retrenchment, redundancy, or termination of business) and as a consequence babayaran ka ng separation pay then, that separation pay IS NOT subject to tax.

Now, ang tanong, for what reason ka ba nabigyan ng separation pay? is it "within your control"? or "beyond your control"? yan ang guide.

REDUNDANCY and dahilan. so ibig sabihin po hindi po pwedeg kaltasan ng TAX ang separation pay ko...?

imo, it is not taxable