RMC No. 73-2013: Amends Revenue Memorandum Circular No. 31-2013 on the tax treatment of those employed by the United Nations and its Specialized Agencies, provides clarifications therefor as well as additional guidelines on the tax filing obligations of individual taxpayers concerned

Key points

1. UN officials. Under the UN Privileges Convention, UN officials are exempt from Philippine income tax regardless of nationality or residence. Under Section 17, only officials whose names were communicated to the Philippine government through the Department of Foreign Affairs are covered. This applies to those employed by the UN, its principal organs and its agencies, departments, offices, funds, programmes and bodies, excluding Specialized Agencies.
2. Specialized Agencies. Under Section 19(b) of the SA Convention in relation to Section 18(b) of the UN Privileges Convention, officials of Specialized Agencies are exempt from Philippine income tax regardless of nationality or residence. The Philippines must have acceded to the SA Convention for the agency concerned, or the agency must be covered by later written notification to the UN Secretary General under Sections 41 and 43. Agencies not covered take their immunities from their constitutional instruments and cannot claim more.
3. ICRC amendment. Section 2(d) of RMC No. 31-2013 is amended to include the International Committee of the Red Cross (ICRC). ICRC Delegates, who are Swiss nationals, and alien employees, their spouses and dependent family members are exempt from Philippine income tax.
4. Filing procedures. The Circular specifies the procedures for filing income tax returns and declaring compensation income of Philippine nationals and alien individuals, both those covered and those not covered by exemptions or immunities under recognized international agreements or local laws.
5. Confirmation of exemption. International organizations with offices, headquarters or operations in the Philippines, and their employees claiming exemptions, file an application for confirmation of tax exemption or tax treatment with the International Tax Affairs Division of the BIR.

Who is affected

• Officials and employees of the United Nations
• Officials of UN Specialized Agencies
• ICRC Delegates and alien employees, their spouses and dependents
• International organizations in the Philippines and their employees