RR No. 11-2022: Prescribes the guidelines and procedures for the spontaneous exchange of taxpayer specific rulings

Summary

RR No. 11-2022 prescribes the guidelines and procedures for the spontaneous exchange of taxpayer specific rulings with foreign tax authorities.

Key points

1. Rulings covered. The scope includes rulings related to a preferential regime, cross-border unilateral Advance Pricing Arrangements and other unilateral transfer pricing rulings, and cross-border rulings giving a unilateral downward adjustment to taxable profits. It also includes PE rulings and related party conduit rulings.
2. Who exchanges. The Exchange of Information (EOI) Section of ITAD exchanges the rulings, using the template of the Forum on Harmful Tax Practices and the Inclusive Framework on BEPS (Annex A). The Rulings and MAP Section classifies future ITAD rulings and identifies exchange jurisdictions.
3. Timelines. Past rulings are sent as soon as possible after the jurisdictions are identified. Future rulings are sent as soon as possible and no later than three months after issuance, and follow-up requests from another jurisdiction get a response or status update within 90 days.
4. Past and future rulings. Past rulings are limited to PE rulings or rulings on the existence or absence of a PE of a foreign enterprise in the Philippines. They must be issued on or after 1 January 2015 but before 1 September 2017, or on or after 1 January 2012 but before 1 January 2015 and still in effect as of 1 January 2015.
5. Other issuing offices. Other offices that issue rulings send the ruling file with a summary of potential exchange jurisdictions to the EOI Section within thirty (30) days from issuance. The ACIR for Legal Service gives the final review and signs the documents sent to foreign tax authorities.
6. Received rulings and confidentiality. Useful rulings received from treaty partners go to the RDO, which gives feedback within thirty (30) days from the end of the tax investigation. Exchanges follow the DTAs, Section 270 of the NIRC, RA No. 10173 (Data Privacy Act of 2012) and existing issuances.

Who is affected

• International Tax Affairs Division (EOI Section, Rulings and MAP Section)
• BIR offices issuing taxpayer specific rulings
• Taxpayers holding the covered rulings

Deadlines and effectivity

• Future rulings exchanged no later than three months after issuance
• Responses to follow-up requests within 90 days
• Ruling file sent to EOI Section within thirty (30) days from issuance

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