Summary
RR No. 11-2012 amends provisions of RR No. 1-2011 dated February 24, 2011 on documentation of remittances by Overseas Contract Workers (OCWs) or Overseas Filipino Workers (OFWs), and other matters.
Key points
- DST exemption. OCW or OFW remittances are exempt from Documentary Stamp Tax upon showing of the Overseas Employment Certificate, a valid OWWA Membership Certificate, or an electronic receipt issued by the POEA. The exemption is under Sec. 181 of the NIRC, as amended, per R.A. No. 10022.
- Proof of entitlement. For remittances through the banking system credited to an account in the Philippines and withdrawn through an automatic teller machine, or sent through non-bank money transfer agents, the OCW or OFW must show valid proof of entitlement when arranging the transfer.
- Documentation by banks and agents. For monitoring, local banks and non-bank money transfer agents must document OCW/OFW remittances in the prescribed format. It records the sender, recipient, amount, proof of entitlement (OEC, e-receipt or OWWA Membership Certificate), transaction date, remittance date and encashment date.
- Quarterly submission. The information goes to the Revenue District Office or Audit Division under the Large Taxpayers Service where the bank or agent is registered, each quarter.
Who is affected
- OCWs and OFWs
- Local banks
- Non-bank money transfer agents
Deadlines and effectivity
- Quarterly submission on or before the 20th day following the close of the quarter
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.