Double Taxation 2

What is required as proof of residency for TTRA applications?

An original, consularized certification from the tax authority of the income earner's country confirming their residency status for tax treaty purposes.

What document must non-individual income earners submit with TTRA applications?

A photocopy of the Articles of Incorporation (AOI) along with an original, consularized certification from the issuing agency stating it is a faithful reproduction.

What is a Special Power of Attorney (SPA) in the context of TTRA?

An original, consularized SPA or written authorization from the income earner allowing their withholding agent or local representative to file the TTRA.

What certification must corporations or partnerships provide for TTRA?

An original certificate from the Philippine Securities and Exchange Commission (SEC) stating whether the income earner is registered to do business in the Philippines.

What certification must individuals provide for TTRA?

An original certificate from the Department of Trade and Industry (DTI) stating whether the income earner is registered to do business in the Philippines.

What is required as a Certificate of No Pending Case?

An original sworn statement confirming whether the transaction or issue is under investigation, audit, protest, or subject to any judicial appeal.

What additional document is required for Business Profits income type?

A notarized contract, certified passport copies of employees, and a notarized certification from the Philippine contractor regarding the service duration.

What documentation is needed for Shipping income type?

Proof of the vessel's registry, a notarized charter party or contract, and a License to Transact Business in the Philippines, if applicable.

What is required for Air Transport income type?

Proof of the airplane's registry and a License to Transact Business in the Philippines, if applicable.

What documentation is needed for Dividend Income?

A notarized certificate from the Corporate Secretary detailing the dividend declaration, share ownership, and acquisition dates.

What documents are required for Interest Income?

A notarized loan agreement, proof of inward remittance of the loan proceeds, and a notarized certificate from the Corporate Secretary regarding share ownership, if applicable.

What is required for Royalty Income?

The notarized Royalty or Technology Transfer Agreement and proof of registration with the BOI, PEZA, or Intellectual Property Office (IPO), if applicable.

What documentation is needed for Capital Gains?

A notarized Deed of Sale, stock certificates, the latest General Information Sheet (GIS), a Corporate Secretary's certificate on the details of the sale, and financial statements.

What is required for Personal Services income type?

A notarized service contract, certified passport copies, and a notarized certification from the Philippine employer on the service duration.

What documentation is needed for Other Income?

A letter request detailing the transaction and legal basis for the treaty claim, along with the relevant contracts or documents.

Where must TTRA applications be submitted?

Only to the International Tax Affairs Division (ITAD); applications filed with any other BIR office are considered improperly filed.

When must TTRA filings be made?

Before the transaction, defined as before the first taxable event occurs.

What is the processing timeline for TTRA applications?

ITAD must notify the filer of any lacking documents within seven working days of receipt; the filer has fifteen working days to submit the required documents.

What happens if the required documents are not submitted on time?

The TTRA will be archived.

What is the ruling issuance timeline for applications without income characterization issues?

The ruling must be available for release within thirty working days from the receipt of the complete TTRA.

What is the ruling issuance timeline for other applications?

The ruling must be available within sixty working days.

Who typically signs the rulings for TTRA applications?

The Assistant Commissioner for the Legal Service or the Deputy Commissioner for the Legal and Inspection Group; first impression rulings must be signed by the Commissioner of Internal Revenue.

What can a taxpayer do if they receive an adverse ruling?

They can appeal by seeking a review from the Secretary of Finance within thirty days of receipt.

What is the tax immunity status of foreign embassies and international organizations?

They are immune from income tax, including the obligation to withhold income tax on employee salaries.

What is the tax status of employee benefits for non-Filipino nationals and non-permanent residents?

They are exempt from income tax.

What is the general tax rule for Filipino employees working for foreign organizations?

They are taxable unless they work for specific organizations with exemptions under international agreements.

What must Filipino employees do to confirm their tax exemption?

File an application for confirmation of tax exemption with the BIR's ITAD; the confirmation certificate serves as proof.

What is the tax status of employees working in Philippine embassies abroad?

They are subject to Philippine income tax and are not considered non-resident citizens.