REVENUE REGULATIONS NO. 29-2020 issued on October 15, 2020 implements the provisions of Republic Act No. 11494 (Bayanihan to Recover as One Act) relative to the tax exemption of certain income payments. 
       The following income payments shall be excluded from gross income and shall
not be subject to Income Tax:
       a. Retirement benefits received by officials and employees of private firms, whether                               individual or corporate, from June 5, 2020 to December 31,2020, provided that the amount               received is in accordance with a retirement plan duly-registered with the BIR. Provided                     further, that any re-employment of such official or employee in the same firm and its                         related parties as discussed under Section 4 of Revenue Regulations (RR) No. 19-2020,                       within the succeeding twelve (12)-month period shall be considered as proof of non-                           retirement. Note, however, that the abovementioned conditions do not cover the                               retirement benefits of employees under Section 2.78.1(B)(1) of RR No. 02-98, as amended.             If the re-employment happens within calendar year 2020, the employer shall include the said             retirement benefits in the gross income of the concerned official or employee for 2020.                     However, if the re-employment will occur in 2021 and within the twelve-month period, the               concerned employee shall pay the taxes due on the retirement benefits received within                   thirty (30) days from date of re-employment, or on the due date for the payment of the                     second installment payment of 2020 Income Tax, whichever comes later, without penalties.
    b. COVID-l9 Special Risk Allowance given to public and private health workers under the definition and conditions set forth in the Regulations.                                                                                         c. Actual Hazard Duty Pay given to Human Resources for Health (HRH) under the definition and conditions set forth in Section 2(B) and (D) of the Regulations.                                                                 d. Compensation paid to private and public health workers who have contractedCOVID-19 in the line of duty or dies while fighting COVID 19, amounting to:                                                                                  ● One Million Pesos (₱ 1,000,000.00) in case of death; or                                                                                ● One Hundred Thousand Pesos (₱ 100,000.00) in case of severe or criticalsickness; or                        ● Fifteen Thousand Pesos (₱ 15,000.00) in case of mild or moderate sickness.                                        Provided that, such amount is given or to be given from February 1, 2020 and during state                of national emergency due to COVID-19 as declared by the President; Provided further,                      that the compensation provided herein shall be given to the beneficiaries not later than                   three (3) months after the date of confinement or death; Provided finally, that the                               required supporting documents are submitted.                                                                                               For compensation in case of death, the said amount shall not also be included as part of                   the gross estate of the decedent subject to Estate Tax.                                                                            The above mentioned income payments shall be included in the Alphabetical List of Employees/Payees being submitted annually by employers pursuant to existing regulations. In addition, a one-time list of recipients shall be provided not later than January 15, 2021 to the Revenue District Office/concerned Office under the Large Taxpayers Service having jurisdiction over the employer/implementing government agency. Such list must indicate the names of the recipient with corresponding Taxpayer Identification Number (TIN), the nature of income or compensation paid, the amount and date of payment and attested to by the authorized official of the employer/implementing agency. Concerned employers shall also submit quarterly list of employees who received retirement benefits but are re-employed during the twelve-month period. The said list shall be submitted within thirty (30) days from the close of all quarters in 2021 only.                                                                                                                                                                                             In the event that taxes were withheld from the retirement benefits under Section 3 (A)of the Regulations by private employers, whether individual or corporate, the same shall be refunded to the concerned employees.                                                                                                                          Concerned employers of the public or private health workers and HRHs shall likewise refund the Income Tax  withheld from the said income payments  after the year-end adjustment by the employer,  for  purposes of   determining the taxable compensation and the corresponding tax due of the employees. The said adjustment will determine which employee has been withheld with more or less than the tax due. If the adjustment resulted to excess tax remittance, such excess shall be deducted or applied as deduction  in the  succeeding  Withholding Tax remittance.