Special InTAX: February 2022 Issue 1 | Volume 3

InTAX is an official publication of R.G. Manabat & Co.'s Tax Group

InTAX is an official publication of R.G. Manabat & Co.'s Tax Group

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special intax

Bureau of Internal Revenue


The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 20-2022, 17 February 2022, to provide guidance on the filing of Requests for Confirmation (RFC), Tax Treaty Relief Applications (TTRA) and Tax Sparing Applications (TSA). Salient provisions of the issuance are as follows:

  •  The RMC clarifies that there is no need for taxpayers who were already issued with a Certificate of Entitlement of Treaty Benefit (COE) to file an RFC or TTRA every time an income of similar nature is paid to the same nonresident.  The tenor of the COE allows the ruling to be applied to subsequent or future income payments.
  •  In applying the confirmed treaty benefit to future income payments, the income payor or withholding agent shall always be guided by and comply with the requisites mentioned in the COE. (i.e. if the COE mentions tax residency as a requisite for continuous enjoyment of treaty benefit, the income payor must require the nonresident to submit first a tax residency certificate (TRC) for such relevant year before making any payment).
  • Such rule also applies to COE for the reduced dividend rate issued by the BIR for TSA.
  • A new RFC, TTRA or TSA shall only be filed if any of the requisites mentioned in the certificate are absent.
  • During a tax audit, the income payor shall submit or present a copy of the duly issued COE and proof of satisfaction of the requisites cited therein. The tax auditor should verify authenticity of the documents submitted even with the assistance of the BIR International Tax Affairs Division (ITAD).
  • For business profits, income from services (dependent or independent), capital gains, income derived by teachers, and such other income from non-recurring transactions, the RFCs or TTRAs shall continue to follow the requirements under Revenue Memorandum Order (RMO) No. 14-2021, as amended by RMC No. 77-2021.
  •  For long-term contracts of services which require annual updating, requirements have been laid down by the RMC for submission such as the following:

a)    TRC of the nonresident for the relevant year;

b)    Sworn certification (annexed to the issuance) which states the following:

1.    the services provided by the foreign enterprise;

2.   the place of performance of such services;

3.   individuals who rendered the services on behalf of the foreign enterprise, their positions/designations and professional background; and

4.    duration of stay in the Philippines of the said individuals.

c)    Certified true copy of the employees’ passports or a certification duly issued by the Bureau of Immigration stating their dates of arrival in, and departure from the Philippines;

d)    Certificate of completion of the project duly signed by the income recipient and duly accepted by the domestic income payor, if applicable;

e)    Invoice(s) duly issued by the income recipient in accordance with the invoicing requirements of the country of residence, if applicable; and

f)    Bank documents/certificate of deposit/telegraphic transfer/telex/money transfer evidencing the payment/remittance of income, if applicable.


Attached are the full texts of the issuances.  

Revenue Memorandum Circular No. 20-2022

Revenue Memorandum Circular No. 20-2022 Annex A

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