Summary
RMO No. 43-2020 streamlines the process of issuing Tax Residency Certificates (TRCs), amending pertinent provisions of RMO No. 51-2019.
Key points
- Application. Individual and non-individual applicants submit a signed BIR Form No. 0902 with the documents required in the Order to the International Tax Affairs Division (ITAD). The Case Officer tells the applicant of any deficiency by registered or electronic mail within three (3) working days.
- Action period and signatory. Applications are acted on within fourteen (14) working days from submission of complete requirements. The BIR keeps its own TRC Form, signed only by the Assistant Commissioner for Legal Service, and applications filed at RDOs or LTDs are immediately indorsed to ITAD.
- Post-issuance verification. ITAD conveys relevant information to the RDO, LTD or National Investigation Division, which checks whether the foreign source income was declared and collects deficiency taxes and penalties if warranted. It may request information from the foreign tax authority through ITAD’s Exchange of Information Unit, and reports its results to ITAD within thirty (30) calendar days from termination.
- False declarations. A taxpayer who made a false declaration under oath may be charged with perjury under Article 183 of the Revised Penal Code and other offenses, in addition to deficiency taxes.
- Treaty benefits and foreign tax credits. Philippine taxpayers with income from another contracting state are advised to secure a TRC and present it to the foreign tax authority for treaty benefits. Those who fail to do so cannot claim foreign tax credits beyond the tax that would have been due in the source state under the treaty.
Who is affected
- Individual and non-individual TRC applicants
- Philippine taxpayers deriving income from another contracting state
- RDOs, LTDs and ITAD
Deadlines and effectivity
- Deficiency notice within 3 working days
- Action within 14 working days from complete requirements
- Investigation results to ITAD within 30 calendar days from termination
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.