Revenue Memorandum Circular · RMC

RMC No. 20-2022

The Circular is issued to limit the number of RFCs and TTRAs filed with ITAD by clarifying that taxpayers already issued COEs whose tenor allows the ruling to be applied to subsequent or future income payments need not file an RFC or TTRA every time similar income is paid to the same nonresident.

Bureau of Internal RevenueIndependent research copy

Document type: RMC
Number: 20
Year: 2022
Text quality: Not specified

Document text

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RMC No. 20-2022 clarifies that taxpayers already holding a Certificate of Entitlement to Treaty Benefit (COE) whose tenor covers future or subsequent income payments need not file a new Request for Confirmation (RFC), Tax Treaty Relief Application (TTRA) or tax sparing application every time similar income is paid to the same nonresident. The income payor must still satisfy the requisites stated in the COE before paying (e.g., obtain a Tax Residency Certificate first if tax residency is required); a new RFC, TTRA or tax sparing application is needed only if a requisite in the certificate is absent. RFCs and TTRAs for non-recurring income (e.g., business profits, services, capital gains, teachers' income) still follow RMO No. 14-2021, as amended by RMC No. 77-2021, and during audit the income payor must present the duly issued COE and proof that its requisites were met.