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Philippines streamline their processes for non-resident taxpayers seeking to apply tax treaty benefits

The Bureau of International Revenue releases REVENUE MEMORANDUM ORDER NO. 14-2021 (The Memorandum) to streamline their processes and documentation requirements for non-resident taxpayers seeking to apply income tax treaty benefits on Philippine sourced income.

Non-resident taxpayers entitled to apply a reduced withholding tax rate are required to submit

BIR Form No. 0901 (Application for Treaty Purposes) bit.ly/2SD1CVw, and
a tax residency certificate issued by the foreign tax authority

to each withholding agent or income payor prior the payment of income for the first time.

Failure to provide the above mentioned documents leads to withholding using the regular rates prescribed under the Tax Code and not the treaty rate agreed in the applicable double tax treaty.

The Memorandum is available under the following link bit.ly/33skfh5

The Philippines actually has 43 double tax treaties ratified and in force. The list of double tax treaties can be found here bit.ly/33z2g8s.