Tax Treaty Benefits in the Philippines: How to File a TTRA with the BIR

A nonresident earning income from Philippine sources may be taxed at a lower rate — or exempted entirely — under a tax treaty between the Philippines and the income earner's country. To claim that treatment, the income earner (or an authorized representative) must file a Tax Treaty Relief Application (TTRA) with the Bureau of Internal Revenue. Under Revenue Memorandum Order No. 72-2010, the application must be filed with the International Tax Affairs Division (ITAD) before the transaction, meaning before the first taxable event. Filing late or with the wrong office disqualifies the application.

What a Tax Treaty Relief Application Is

A TTRA is the request that the BIR confirm the preferential tax treatment available under an existing Philippine tax treaty. The relief applies to specific types of income, each with its own BIR form under RMO No. 72-2010:

• BIR Form No. 0901-P — Business Profits
• BIR Form No. 0901-T — Profits from Shipping and Air Transport
• BIR Form No. 0901-D — Dividend Income
• BIR Form No. 0901-I — Interest Income
• BIR Form No. 0901-R — Royalty Income
• BIR Form No. 0901-C — Capital Gains
• BIR Form No. 0901-S — Income from Services
• BIR Form No. 0901-O — Other Income Earnings

These forms superseded BIR Form No. 0901 and BIR Form No. 1928 under earlier issuances. Three copies of the accomplished form must be signed by the applicant — either the income earner or a duly authorized representative.

The General Documentary Requirements

Section 3 of RMO No. 72-2010 lists the documents attached to every TTRA:

1. Proof of residency — an original consularized certification from the foreign tax authority confirming the income earner is a resident of that country for the tax year concerned.
2. Articles of Incorporation (for non-individual income earners) — a photocopy, with a consularized certification that it is a faithful reproduction.
3. Special Power of Attorney — a consularized SPA or written authorization where the filer is the withholding agent or local representative; a letter of authorization from the withholding agent may also be required.
4. Certification of business presence in the Philippines — from the SEC for corporations or partnerships, or the DTI for individuals.
5. Certificate of No Pending Case — a sworn statement on whether the same taxpayer or transaction is under investigation, audit, protest, refund claim, collection, or judicial appeal.

Additional documents are required depending on the income type — for example, dividend applications need a notarized corporate secretary's certificate on the dividend declaration and shareholdings, while capital gains applications follow the separate documentary rules under RMO No. 30-2002.

Where and When to File

All TTRAs must be submitted to and received only by ITAD. An application filed with any other BIR office is considered improperly filed. Filing must be made before the occurrence of the first taxable event — generally the first time the income payor is required to withhold tax, or for capital gains applications, before the due date of the documentary stamp tax on the sale of shares.

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

How ITAD Processes the Application

Within seven (7) working days from receipt, ITAD notifies the filer of any lacking, missing, or insufficient documents. The filer then has fifteen (15) working days from receipt of that notice to comply. If the documents are not submitted on the designated date, the TTRA is archived — without prejudice to re-filing covering exactly the same transaction, reckoned from the date of the original filing.

Rulings are released after sixty (60) working days from receipt of the TTRA or of the complete documents, whichever comes later. Where there is no issue on income characterization, the period is thirty (30) working days. A ruling adverse to the nonresident income earner may be elevated to the Secretary of Finance within thirty (30) days from receipt; no motion for reconsideration is entertained.

Common Grounds for Rejection

Requests based on hypothetical or future transactions, or those unaccompanied by complete documents, fall within the "No-Ruling Area" under Section 16 and will not be accepted by ITAD. Taxpayers also cannot withdraw documents already filed; if a transaction is discontinued, a letter must be filed to close the TTRA, but the documents remain with ITAD for safekeeping.

Frequently asked questions

Can I claim tax treaty benefits without filing a TTRA? No. The relief is confirmed through a TTRA filed with ITAD before the transaction. Failure to properly file disqualifies the application under RMO No. 72-2010.

Where do I file a Tax Treaty Relief Application in the Philippines? Only with the International Tax Affairs Division of the BIR. Applications submitted to any other BIR office are considered improperly filed.

How long does the BIR take to issue a tax treaty ruling? The ruling should be available for release sixty (60) working days from receipt of the TTRA or complete documents, or thirty (30) working days where there is no issue on income characterization.

Practical takeaways

• File the TTRA with ITAD before the first taxable event — timing is a condition for validity, not a formality.
• Match the correct BIR Form No. 0901 series to the income type being claimed.
• Prepare consularized documents early; residency certification and SPAs must come from the foreign jurisdiction.
• Respond to ITAD's notice of deficiencies within fifteen (15) working days to avoid archiving.
• Keep a copy of the original filing — it is required if an archived TTRA is re-filed.

Primary sources

The rules discussed above are drawn from the following issuances, embedded here in full for your reference.

RR No. 11-2018 — Amends certain provisions of RR No. 2-98, as amended, to implement further amendments introduced by RA No. 10963 (TRAIN Law) relative to withholding of Income Tax (Published in Manila Bulletin on March 19, 2018) Digest | Full Text | Annex A | Annex B-1 | Annex B-2 | Annex B-3 | Annex C | Annex D | Annex E | Annex FOpen in Law LibraryDownload PDF

RR No. 16-2005 — Prescribes the Consolidated Value-Added Tax Regulations of 2005 superseding RR No. 14-2005 (Published in Manila Times on Oct. 21, 2005) Digest | Full TextOpen in Law LibraryDownload PDF

RMO No. 72-2010 — Prescribes the guidelines on the processing of Tax Treaty Relief Applications pursuant to existing Philippine Tax Treaties Digest | Full Text | Annex A | Annex B | Annex C | Annex D | FormsOpen in Law LibraryDownload PDF

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.