RMO No. 02-2013: Prescribes the policies, guidelines and procedures in processing specific requests for information pursuant to the exchange of information provision of Philippine Tax Treaties

Summary

RMO No. 02-2013 prescribes the policies, guidelines and procedures for processing specific requests for information under the exchange of information provisions of Philippine tax treaties, in relation to RA No. 10021 and RR No. 10-2010.

Key points

1. Competent authority. Exchange of information takes place only between competent authorities or their authorized representatives. Section 4 of RR No. 10-2010 designates the Commissioner of Internal Revenue as the Philippine competent authority.
2. Scope of information. It covers information necessary or foreseeably relevant to enforcing domestic laws on Income Taxes and other covered taxes, including tax evasion and criminal tax cases. It is not limited to taxpayer-specific information and may include statistics, industry information and administrative practices.
3. Mandatory exchange. The obligation is mandatory and not limited to information in BIR files. The Commissioner can obtain information, summon and examine persons, and inquire into bank deposit accounts under Section 6(F) of the NIRC, as amended by RA No. 10021.
4. When a request may be declined. Grounds include information the requesting party could not obtain under its own laws, years or taxes not covered by the treaty, and disclosure contrary to public policy. Others are provisions discriminating against a Philippine national and information subject to legal privilege.
5. Timing. The international standard is 90 days from receipt of a request, which may be extended if there are difficulties.
6. Confidentiality. Information received is confidential and may be disclosed only under Philippine law (such as Section 270 of the NIRC) and the relevant arrangement. Disclosure outside the BIR needs sign-off by the Commissioner or an authorized representative.

Deadlines and effectivity

• Standard processing period: 90 days from receipt of a request

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.