Sie sind auf Seite 1von 6

REVENUE REGULATIONS NO.

02-98
(A)
Income payments to a citizen or to a resident alien individual;
(3)
Interest income received by a resident individual taxpayer from a depository bank under the
Foreign Currency Deposit System Seven and one-half percent (7.5%).
In case of dispositions of real property made by individuals to the government or any of its political
subdivisions or agencies or to government-owned or controlled corporations, the tax to be imposed
shall be determined either under Section 24(A) of the Code for normal income tax for individual
citizens and residents or under Section 24(D)(1) of the Code for the final tax on capital gains from sale
of property at six percent (6%), at the option of the taxpayer. LLphil
(B)
Income Payment to Non-resident Aliens Engaged in Trade or Business in the Philippines.
The following forms of income derived from sources within the Philippines shall be subject to final
withholding tax in the hands of a non-resident alien individual engaged in trade or business within the
Philippines, based on the gross amount thereof and at the rates prescribed therefor:
In case of dispositions of real property made by individuals to government or any of its political
subdivisions or agencies or to government-owned or controlled corporations, the tax to be imposed
shall be determined either under Section 24(A) of the code for the normal rate of income tax for
individual citizens and residents or under Section 24(D)(1) of the Code for the final tax on capital gains
from sale of property at six percent (6%), at the option of the taxpayer.
(C)
Income Derived from All Sources Within the Philippines by a Non-resident Alien Individual
Not Engaged in Trade or Business Within the Philippines. The following forms of income derived
from all sources within the Philippines shall be subject to a final withholding tax in the hands of a nonresident alien individual not engaged in trade or business within the Philippines based on the following
amounts and at the rates prescribed therefor:
(1)
On the gross amount of income derived from all sources within the Philippines by a nonresident alien individual who is not engaged in trade or business in the Philippines as interest, cash
and/or property dividends, rents, salaries, wages, premiums, annuities, compensation, remuneration,
emoluments, or other fixed or determinable annual or periodic or casual gains, profits and income and
capital gains Twenty five percent (25%). Cdpr
In case of dispositions of real property made by individuals to government or any of its political
subdivisions or agencies or to government-owned or controlled corporations, the tax to be imposed
shall be determined either under Sec. 24(a) of the Code for the rates of income tax for individual
citizens and residents or under Sec. 24(D)(1) of the Code for the final tax on capital gains from sale of
property at six percent (6%), at the option of the taxpayer.
(F)
Income of Aliens Employed by Foreign Petroleum Service Contractors and Subcontractors.
A final withholding tax equivalent to fifteen percent (15%) shall be withheld from the gross income of
an alien individual who is a permanent resident of a foreign country but who is employed and assigned
in the Philippines by a foreign service contractor or by a foreign service subcontractor who is engaged
in petroleum operations in the Philippines. His gross income includes salaries, wages, annuities,
compensation, remuneration and other emoluments, such as honoraria and allowances, received from
such contractor or subcontractor.
(H)
Income Payment to a Resident Foreign Corporation. The following forms of income shall be
subject to a final withholding tax in the hands of a foreign corporation, based on the gross amount
thereof and at the rate of tax prescribed therefor:
(1)
Offshore Banking Units On income derived by offshore banking units authorized by the
Bangko Sentral ng Pilipinas (BSP) from foreign currency transactions with local commercial banks and
branches of foreign banks that may be authorized by the BSP to transact business with offshore banking
units and other OBUs including interest income derived from foreign currency loans granted to resident
Ten percent (10%).
(5)
Income derived by a depository bank under the expanded foreign currency deposit system from

foreign currency transactions with local commercial banks including branches of foreign banks that
may be authorized by the Bangko Sentral ng Pilipinas to transact business with foreign currency
deposit system units and other depository banks under the expanded foreign currency deposit system
including interest income from foreign currency loans granted by such depository banks under the said
expanded foreign currency deposit system to resident Ten percent (10%).
(I)
Income Derived From all Sources Within the Philippines by Non- Resident Foreign
Corporation. The following shall be subject to final withholding tax based on the gross amount of
income and at the rate of tax prescribed therefor:
(2)
Gross income from all sources within the Philippines derived by non-resident cinematographic
film owners, lessors or distributors Twenty five percent (25%).
(3)
On the gross rentals, lease and charter fees, derived by non-resident owner or lessor of vessels
from leases or charters to Filipino citizens or corporations as approved by the Maritime Industry
Authority Four and one-half percent (4.5%).
(4)
On the gross rentals, charter and other fees derived by non-resident lessor of aircraft,
machineries and other equipment Seven and a half percent (7.5%).
Sec. 25(B)
Non-resident alien individual not engaged in trade or business in the Philippines.
(D)
Cinematographic film rentals and other payments On gross payments to resident individuals
and corporate cinematographic film owners, lessors or distributors Five percent (5%).
SECTION 2.78.
Withholding Tax on Compensation. The withholding of tax on compensation
income is a method of collecting the income tax at source upon receipt of the income. It applies to all
employed individuals whether citizens or aliens, deriving income from compensation for services
rendered in the Philippines. The employer is constituted as the withholding agent.
(9)
Remuneration for services as employee of a nonresident alien individual or foreign entity.
The term "compensation" includes remuneration for services performed by an employee of a
nonresident alien individual, foreign partnership or foreign corporation, whether or not such alien
individual or foreign entity is engaged in trade or business within the Philippines. Any person paying
compensation on behalf of a non-resident alien individual, foreign partnership, or foreign corporation
which is not engaged in trade or business within the Philippines is subject to all provisions of law and
regulations applicable to an employer.
(10) Compensation for services performed outside the Philippines. Remuneration for services
performed outside the Philippines by a resident citizen for a domestic or a resident foreign corporation
or partnership, or for a non-resident corporation or partnership, or for a non-resident individual not
engaged in trade or business in the Philippines shall be treated as compensation which is subject to tax.
A non-resident citizen as defined in these regulations is taxable only on income derived from sources
within the Philippines. In general, the situs of the income whether within or without the Philippines, is
determined by the place where the service is rendered.
(c)
Social security benefits, retirement gratuities, pensions and other similar benefits received by
residents or non-resident citizens of the Philippines or aliens who come to reside permanently in the
Philippines from foreign government agencies and other institutions private or public;
(5)
Compensation for services by a citizen or resident of the Philippines for a foreign government
or an international organization. Remuneration paid for services performed as an employee of a
foreign government or an international organization is exempted. The exemption includes not only
remuneration paid for services performed by ambassadors, ministers and other diplomatic officers and
employees but also remuneration paid for services performed as consular or other officer or employee
of a foreign government or as a non-diplomatic representative of such government.
(B)
Person paying compensation on behalf of a nonresident. The term "employer" also means
any person paying compensation on behalf of a non-resident alien individual, foreign partnership, or
foreign corporation, who is not engaged in trade or business within the Philippines.
Subsection (B) Twenty-five percent on income derived from sources within the Philippines by a

non-resident alien individual not engaged in trade or business in the Philippines.


(ii)
For each legally married employee, the amount of personal exemption allowed is thirty two
thousand pesos (P32,000.00). A married individual deriving income within the Philippines whose
spouse is unemployed or is a non-resident citizen deriving income from foreign sources, shall be
entitled to a personal exemption of thirty two thousand pesos (P32,000.00) only;
A senior citizen is any resident citizen of the Philippines of at least sixty (60) years old, including those
who have retired from both government offices and private enterprises, and has an income of not more
than Sixty thousand pesos (P60,000) per annum subject to the review of the National Economic
Development Authority (NEDA) every three years (definition taken from Republic Act No. 7432).
The husband shall be the proper claimant of the additional exemption for qualified dependent children
unless he explicitly waives his right in favor of his wife in the application for registration (BIR Form
1902) or in the withholding exemption certificate (BIR Form 2305). Provided, however, that where the
spouse of the employee is unemployed or is a non-resident citizen deriving income from foreign
sources, the employed spouse within the Philippines shall be automatically entitled to claim the
additional exemptions for children.
(4)
Qualified dependents. Name and date of birth of qualified dependent/s (children, parent/s,
brother/s, sister/s or senior citizens);
(b)
Husband is a non-resident citizen deriving income from foreign sources;
SECTION 2.79.5.
Non-Resident Aliens. Compensation for services rendered in the Philippines
paid to non-resident aliens engaged in trade or business shall be subject to withholding under these
Regulations.
(3)
Payments for lease or use of property or property rights to non-resident owners 10%
(c)
premiums collected or received by any branch of a domestic corporation, firm or association
doing business outside the Philippines on account of any life insurance of a non-resident insured, if any
tax on such premium is imposed by a foreign country where the branch is established;
(c)
Boxing exhibitions except those wherein World or Oriental Championship in any division is at
stake and at least one of the contenders is a citizen of the Philippines and promoted by a citizen/s of the
Philippines or by a corporation or association at least 60% of the capital of which is owned by such
citizens Ten percent (10%)
REVENUE REGULATIONS NO. 01-79
SUBJECT
:
Regulations Governing the Taxation of Non-resident Citizens
SECTION 1. Scope. These amended regulations shall govern the manner of taxation of nonresident citizens as provided for under Section 21 of the Tax Code, as amended, and shall be known as
Revenue Regulations No. 1-79.
SECTION 2. Who are considered as nonresident citizens.
The term "non-resident citizen" means one who establishes to the satisfaction of the Commissioner of
Internal Revenue the fact of his physical presence abroad with the definite intention to reside therein
and shall include any Filipino who leaves the country during the taxable year as:
Any such Filipino shall be considered a non-resident citizen for such taxable year with respect to the
income he derived from foreign sources from the date he actually departed from the Philippines.
A Filipino citizen who has been previously considered as a non-resident citizen and who arrives in the
Philippines at any time during the taxable year to reside therein permanently shall also be considered a
non-resident citizen for the taxable year in which he arrived in the Philippines with respect to his
income derived from sources abroad until the date of his arrival.
SECTION 3. Proof of intention. A Filipino citizen who leaves the Philippines to reside abroad
either as an immigrant or for permanent employment or a contract worker, shall submit to the
Commissioner of Internal Revenue proof of his intention of leaving the Philippines to reside
permanently abroad. A returning non-resident citizen, on the other hand, must present proof of his

intention to return to and reside permanently in the Philippines. Such proof of intention shall be
attached to his income tax return (BIR Form No. 1701C) and may consist of the following:
(d)
In the case of a returning non-resident citizen
(1)
Xerox copy of his passport bearing the stamp of Philippine immigration authorities showing
that he is a returning resident as distinguished from a mere Balikbayan.
SECTION 4. Manner of filing returns. Every non-resident citizen must file an income tax return
covering all his income earned abroad on BIR Form No. 1701C. When husband and wife are both nonresident citizens, only one return containing their consolidated income is required to be filed on BIR
Form No. 1701C.
If aside from the foreign income, the non-resident citizen also derives income from Philippine sources,
two separate returns should be filed, one on BIR Form No. 1701C covering the income derived from
foreign sources and the other on BIR Form No. 1701 or 1701A, as the case may be, covering the
income from sources within the Philippines. However, if the Philippine income is derived solely from
salaries, wages, remunerations or other similar compensation for services rendered and such gross
income does not exceed P2,000, if the taxpayer is single, or P3,333.33, if married or a head of the
family, the non-resident citizen is exempt from filing an income tax return with respect to such income.
The income tax return of non-resident citizen covering his taxable income earned abroad shall be
accompanied by a copy of the income tax return filed with the national government of the foreign
country of his residence as well as the evidences of tax payment.
1.
What to include as gross income. The gross income of a non-resident citizen derived from
sources outside the Philippines includes all income enumerated under Section 29 of the National
Internal Revenue Code, whether or not such income is exempted from income tax in the foreign
country where it was derived.
2.
Rate of tax. Beginning with the taxable year 1978, there shall be imposed on the adjusted
gross income of non-resident citizen a tax computed as follows:
a.
Personal exemption of $2,000 if the non-resident citizen is single or a married person legally
separated from his or her spouse, or $4,000 if married or head of a family;
5.
Computation of tax. The computation of the tax due from a non-resident citizen on income
derived abroad is illustrated as follows:
Mr. Juan de la Cruz, 35 years old, Filipino, married to Maria, with a dependent son, Jose and a resident
of Los Angeles, California.
The tax due on income derived by a non-resident citizen from sources within the Philippines shall be
computed in the same manner as the income tax payable by resident citizens and resident aliens.
If the return is filed and payment of the tax made in the Philippines by or for the non-resident citizen,
the tax may be paid in Philippine currency, the dollar amount of the tax to be converted into pesos at
the rate of exchange prescribed by Revenue Memorandum Circular No. 21-78 for internal revenue tax
purposes.
When the tax due is in excess of two hundred dollars (U.S.$200.00), the non-resident citizen may elect
to pay the tax in two equal installments in which case, the first installment shall be paid at the time the
return is filed and the second installment, on or before the fifteenth day of July following the close of
the calendar year. If any installment is not paid on or before the date fixed for its payment, the whole
amount of the tax unpaid becomes due and payable together with the delinquency penalties.
(f)
"Tax Credit Certificate" shall mean the certificate issued by the Bureau of Internal Revenue
evidencing credits against internal revenue taxes extended to registered export producers under
Presidential Decree No. 1469. A tax credit certificate shall be non-transferable and it may be used by
the registered export producer against all internal revenue tax liabilities but in no case may it be used so
as to result, in effect, in a refund.
REVENUE REGULATIONS NO. 09-99

SUBJECT
:
Amending Revenue Memorandum Order No. 30-99 dated March 17, 1999
prescribing the filing of returns by those individuals exempt from tax as provided under Section 23 (B)
and (C) in relation to Section 51 (A) (2) (d) and (A) (3) of Republic Act No. 8424 (NIRC of 1997)
TO
:
All Internal Revenue Officers and Others Concerned
SECTION 1. Scope. Pursuant to Section 244 of the Tax Code of 1997, in relation to Section 23 (B)
(C) , Section 51 (A) (2) (d) and (A) (3) of the same Code, this Regulation is hereby promulgated
amending Revenue Memorandum Order No. 30-99 prescribing the filing of returns by non-resident
citizens, overseas contract workers (OCWs), and seamen. This covers all income earned by nonresident citizens from abroad beginning January 1, 1998. cdtai
SECTION 2. Pertinent Provisions:
Section 22 (E) "The term 'non resident citizen' means:
(1)
A citizen of the Philippines who establishes to the satisfaction of the Commissioner the fact of
his physical presence abroad with a definite intention to reside therein.
(2)
A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad,
either as an immigrant or for employment on a permanent basis.
(3)
A citizen of the Philippines who works and derives income from abroad and whose employment
thereat requires him to be physically present abroad most of the time during the taxable year.
(4)
A citizen who has been previously considered as non-resident citizen and who arrives in the
Philippines at any time during the taxable year to reside permanently in the Philippines shall likewise to
treated as a non-resident citizen for the taxable year in which he arrives in the Philippines with respect
to his income derived from sources abroad until the date of his arrival in the Philippines.
The taxpayer shall submit proof to the Commissioner to show his intention of leaving the Philippines to
reside permanently abroad or to return to and reside in the Philippines as the case may be for the
purpose of this Section."
Section 23 (B) "A non-resident citizen is taxable only on income derived from sources within the
Philippines." cda
Section 23 (C) "An individual citizen of the Philippines who is working and deriving income abroad as
an overseas contract worker is taxable only on income from sources within the Philippines: Provided,
That a seaman who is a citizen of the Philippines and who receives compensation for services rendered
abroad as a member of the complement of a vessel engaged exclusively in international trade shall be
treated as an overseas contract worker."
Section 51 (A) (2) (d) "The following individuals shall not be required to file an income tax return:
(a)
...;
(b)
...;
(c)
...;
(d)
An individual who is exempt from income tax pursuant to the provisions of this Code and other
laws, general or special."
Section 51 (A) (3) "The foregoing notwithstanding, any individual not required to file a return may
nevertheless be required to file an information return pursuant to rules and regulations prescribed by
the Secretary of Finance, upon recommendation of the Commissioner."
Section 244 "Authority of Secretary of Finance to Promulgate Rules and Regulations The Secretary
of Finance upon recommendation of the Commissioner, shall promulgate all needful rules and
regulations for the effective enforcement of the provisions of this Code."
SECTION 3. Compliance and Administrative Procedures:
1.
Every person classified within the scope of this Revenue Regulation, shall make an information
return by accomplishing BIR Form 1701C or the new computerized Form 1703 properly labelling
among others the appropriate "tax due space" as EXEMPT .
The accomplished BIR Form 1701C or new BIR Form 1703 whichever is applicable, together with
other relevant supporting papers (e.g. Employer's Declaration of Income Earned, Financial Statements),

shall be filed not later than April 15 following the taxable year, to the Foreign Post or the Revenue
District Office which has jurisdiction over the place of residence of the taxpayer. cdll
2.
The Foreign Posts shall in turn forward these returns to the Revenue District Office No. 51
Pasay City for compilation/processing purposes.
3.
The respective Revenue District Offices receiving similar returns shall likewise process and file
returns within their own premises.
4.
The Revenue District Offices concerned shall submit to the Chief, International Tax Affairs
Division, an annual report consisting of statistical information covering the aforementioned returns for
the preceding taxable year, as follows (Please refer to Annex A for the format of the report):
a.
Gross Income per country total and per type of income
b.
Number of filers according to the above classification
This report must be submitted not later than July 30 following the taxable year being reported.
SECTION 4. Transitory Provision. 1998 returns filed for this purpose after April 15 but not later
than July 15, 1999 shall not be subject for penalty charges. BIR Form 1701C or 1703 shall be used
until such time that a new form specifically designed for this purpose shall be printed and be made
available. LibLex
SECTION 5. Repealing Clause: All internal revenue issuances, or parts thereof, which are contrary to
or inconsistent with this Regulation are hereby repealed, amended, or modified accordingly.
SECTION 6. Effectivity: This Regulation shall take effect immediately.
(SGD.) EDGARDO B. ESPIRITU
Secretary of Finance
Recommending Approval:
(SGD.) BEETHOVEN L. RUALO
Commissioner of Internal Revenue
ANNEX A