Aaron Louise C. Alminiana

CBET-01-701E

MH/ 6:00-7:30PM

BIR FORM 0901-O: TAX TREATY RELIEF

APPLICATION FOR OTHER INCOME EARNINGS

BIR Form 0901-O is for the “Tax Treaty Relief Application for Other Income

Earnings”. According to Punongbayan-Araullo.com, Tax treaty relief applications are

require whenever exemptions or preferential rates under tax treaties are applied when

making payments to non-residents. Without the application, the payment shall be

subjected to the regular tax rates.

A revised guideline on the processing of tax treaty application (TTRA) had been

issued by the Bureau of Internal Revenue (BIR). Below are significant features of the

guideline:

1. Revised and updated tax treaty relief application forms shall be prescribed for

specific types of income.

2. A minimum (general) set of documentary requirements shall be required for

submission and in addition, specific documentary requirements for each type of

income.

3. The TTRA should be filed before the occurrence of first taxable event (i.e.,

when the income payor is required to withhold the income tax or time the income

payor is required withheld taxes had the transaction been subjected to tax or before

the due date for the DST in case of sale of shares of stock).

4. The ITAD shall be the sole office responsible for receiving TTRA.

5. Requests for ruling not accompanied by complete documents and based on

hypothetical transactions or future transactions shall not be accepted. These shall

be considered as “no-ruling area”.

6. The withdrawal of application/documents already filed with ITAD shall not be

allowed.

7. The ITAD ruling shall be issued after 60 days, or in case there is no issue on

income characterization30 days from the date of receipt of TTRA or submission of

complete documentary requirements, whichever comes later.

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8. Disclosure to any person, including the tax treaty relief applicant or his/its

representatives of the draft BIR ruling or recommended action on the TTRA shall be

prohibited while the same has not been signed by the proper signatory of the BIR.

9. A ruling which is adverse to a non-resident income earner should be appealed

for review at the Department of Finance within 30 days from date of receipt

pursuant to Finance Department Order 23-01.

Form 0901-O with all necessary documents shall be submitted only to and

received by the International Tax Affairs Division of the Bureau of Internal Revenue.

Filing should always be made before the transaction, the occurrence of the first taxable

event.

The guidelines and instructions in filing Form 0901-O, as shown at the back of

the form itself, are as follows:

1. This form shall be duly accomplished in (3) three copies which must be signed by

the applicant who may either be the income earner or the duly authorized

representative of the income earner. All fields must be mandatorily filled-up. If

"NOT APPLICABLE" or "NONE" is/are the appropriate response, the same

has/have to be clearly indicated in the corresponding field.

2. This form together with all the necesary documents mentioned in Part VI shall be

submitted only to and received by the International Tax Affairs Division of the

Bureau of Internal Revenue. Filing should always be made BEFORE the

transaction. Transaction for purposes of filing the Tax Treaty Relief Application

(TTRA) shall mean before the occurrence of the first taxable event.

3. First taxable event shall mean the first or the only time when the income payor is

required to withhold the income tax thereon or should have withheld taxes

thereon had the transaction been subjected to tax.

4. Failure to properly file the TTRA with ITAD within the period prescribed herein

shall have the effect of disqualifying the TTRA under this RMO.

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