RMO No. 01-2000: Prescribes the procedures for the processing of tax treaty relief applications

Key points

1. Scope. The Order covers only applications for tax treaty relief. These include claims or requests for tax exemption, preferential tax treaty rate, and refund or credit of taxes on income derived or to be derived under existing tax treaties.
2. Processing office. Processing moves from the Law Division to the International Tax Affairs Division (ITAD).
3. Application. Availment of treaty relief must be preceded by filing BIR Form No. 0901 (Application for Relief from Double Taxation) with ITAD. It is filed at least 15 days before the transaction, such as payment of dividends or royalties, with supporting documents. BIR Form Nos. TC 001 and TC 002 under RMO No. 10-92 are declared obsolete.
4. Refund or credit claims. Claims are filed with ITAD within the two year period prescribed by Section 229 of the NIRC, as amended under RA 8424.
5. Tax Credit Certificate. The TCC is issued for the account of the non-resident taxpayer/recipient of the income. The Appellate Division issues it on ITAD’s endorsement memo recommending issuance, and ITAD releases the signed TCC to the taxpayer/applicant.

Who is affected

• Taxpayers applying for tax treaty relief

Deadlines and effectivity

• BIR Form No. 0901 filed at least 15 days before the transaction
• Refund or credit claims within the two year period under Section 229 of the NIRC