EXCISE TAX ON REMOVAL OF SWEETENED BEVERAGES PRODUCTS FOR EXPORT (Revenue Regulations No. 10-2021, June 17, 2021)
- The BIR amends pertinent provisions of Section 10 under RR No. 20-2018 relative to the outright exemption granted to the exportation of Sweetened Beverages products.
- Manufacturer shall pay the excise tax on every removal from the place of production.
- After payment of tax, manufacturers at its option may file a claim for excise tax credit/refund; or avail of a claim for product replenishment scheme, subject to terms and conditions:
- Permit shall be per shipment secured from the BIR Office before the product is removed from the place of production;
- Removed products shall be directly transported, loaded aboard the international shipping vessel or carrier, and shipped directly to the foreign country of destination without returning to the Philippines;
- Proof of exportation shall be submitted within 30 days from the date of actual date of exportation, subject to one time maximum 30-day extension to submit documents for meritorious reasons;
- “Exported from the Philippines” is printed on each label that is attached/affixed on the primary container in a recognizable and readable manner.
Effect of failure to submit proof of exportation within the prescribed period |
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CLARIFICATIONS ON TAX TREATY RELIEF APPLICATION/REQUEST FOR CONFIRMATION (RMC No. 77-2021, June 15,2021)
The BIR clarifies certain provisions of Revenue Memorandum Order No. 14-2021 related to tax treaty relief application/request for confirmation.
Who may avail of treaty benefits |
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Failure to submit TRC | Non-resident’s claim shall be denied. | ||
Where to apply | International Tax Affairs Division | ||
When provisions of the applicable treaty shall be applied |
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Mandatory requirement to file a Request for Confirmation (RFC) |
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Deadlines
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Capital Gains |
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Other types of income |
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Consolidated request for confirmation per nonresident income recipient | Case folder shall be pre-arranged per type of income following the sequence of documents in the list of requirements. | ||
Number of TRC in case of multiple income for the year |
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When regular rate was applied instead of treaty rate | Nonresident or authorized representative, should file a TTRA with complete documentary requirements and a claim for refund at any time after the payment of the withholding tax | ||
When annual updating is/not mandatory |
In case of long term contracts involving payment of interest and royalties and other types of income where condition for entitlement to treaty benefits is not dependent on time threshold
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In case of long term contracts where the existence of permanent establishment is dependent on the time threshold
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Proof that income is not effectively connected with permanent establishment of the nonresident foreign enterprise |
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Proof that interest on loan or debt-claims is arm’s length in case of related parties debtor and creditor |
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Audited interim FS for capital gains transactions |
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No automatic denial for failure to file the RFC within the prescribed period | Denials will purely be based on the merits of the case; only penalty for late filing shall be imposed | ||
Extension of time within which to submit additional documents | Not exceeding 30 days | ||
Pending TTRAs within Notice to Submit Additional Documents |
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COE instead of usual BIR ruling | COE will still contain the material facts of the case and a ruling confirming entitlement to treaty benefit | ||
No TTRA or CORTT Form filed for income payments in 2020 and prior years | Withholding agent has until the last working day of this year to file the RFC with complete requirements
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AFS as requirement for dividends | AFS as of the taxable year immediately preceding the date of declaration, which was duly filed with the BIR and SEC |