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Tax Treaties with the Philippines
The Philippines has existing tax treaties with various countries including the United States, Canada, UK, Canada, Singapore, China, and Malaysia which provide for tax relief on income derived by foreign or local residents of the Philippines and the foreign country from sources within their respective territories. The tax relief includes tax exemption or entitlement to preferential tax rates on certain types of income such as interest, royalties, and dividends.
Availment of tax treaty relief is not simply automatic in the sense that taxpayers are required under existing BIR rules and regulations to comply with certain formalities before the said tax relief can be availed.
Securing a tax treaty relief ruling requires the filing of a formal request with the International Tax Affairs Division (ITAD) of the BIR stating the nature, mechanics, and conditions of the specific transaction applied for together with various supporting documents which include documents executed abroad and thus requires certification and authentication of the concerned Philippine consulate abroad.
The processing of the application would normally take less than six (6) months although a longer timetable may apply if additional documents are requested in the course of the evaluation of the application.
List of Countries with Tax Treaty with the Philippines
- New Zealand
- United Arab Emirates
- United Kingdom of Great Britain and Northern Ireland
- United States of America
Determine your eligibility for tax incentives in the Philippines
We will help you acquire access to tax incentive programs that are applicable to your enterprise, from tax breaks and tax holidays to employment of foreign nationals.