Special InTAX: April 2021 Issue 1 | Volume 1

Bureau of Internal Revenue

The Bureau of Internal Revenue (BIR) issued the following:

Revenue Memorandum Order (RMO) No. 14-2021, 31 March 2021, to streamline the procedures and documentary requirements for the availment of treaty benefits (i.e., Tax Treaty Relief Application or TTRA). The RMO covers all items of income derived by non-resident taxpayers from Philippine sources that are entitled to relief from double taxation under the relevant tax treaty.

The following items are specified in RMO No. 14-2021:

1. Guidelines and Procedures (Section 4);
2. Documentary Requirements (Section 5);
3. Requirement of Authentication (Section 6);
4. Manner of Granting and Denying Treaty Benefits (Section 7);
5. Appeals (Section 8);
6. Evaluation of Pending TTRAs for Income Earned in Prior Years (Section 9);
7. Filing a Claim for Refund (Section 10);
8. Responsibilities of Assessment Arms of the Bureau (Section 11);
9. Other Applicable Taxes (Section 12);
10. Penalties for Late Filing of Requests for Confirmation (Section 13)

Upon the effectivity of this RMO, all pending TTRAs shall be processed following the manner laid down in Section 7 of the RMO. Section 9 of this RMO also provides that taxpayers with pending TTRAs for income earned in 2020 and prior years, including those with Notice of Archiving, are given three (3) months from the receipt of a Final Notice to Submit Additional Documents (Final Notice), or from the effectivity of this Order, whichever is later, to submit the lacking documents. Taxpayers who were issued a Notice of Archiving will no longer receive a Final Notice.

For dividends, interest and royalties, the submission of the Certificate of Residence for Treaty Relief (CORTT) Form shall be discontinued.  Previously submitted CORTT Forms shall still be forwarded to the concerned Revenue District Offices (RDOs) for compliance check.

Revenue Memorandum Circular (RMC) No. 42-2021, 31 March 2021, to circularize Republic Act No. 11534 entitled, “An Act Reforming the Corporate Income Tax and Incentives System, Amending for the Purpose Sections 20, 22, 25, 27, 28, 29, 34, 40, 57, 109, 116, 204 and 290 of the National and Internal Revenue Code of 1997, as Amended and Creating Therein New Title XIII, and For Other Purposes”. Also annexed in the RMC is the Veto Message of President Rodrigo Roa Duterte.

Attached are the full texts of the issuances.

Revenue Memorandum Circular No. 42-2021

Revenue Memorandum Order No. 14-2021