RMO No. 28-2019 — Prescribes the policies and guidelines on the registration requirements of foreign nationals

REPUBLICOFTHE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

May 30,2019

REVENUE MEMORANDUM ORDER NO. 28- 20/G

SUBJECT: Prescribing Policies and Guidelines on the Registration Requirements of Foreign Nationals

TO All Internal Revenue Officials,Employees and Others Concerned

individuals not engaged and/or engaged in trade or business or gainful employment in the Philippines. This Order is being issued to prescribe the registration requirements of foreign

A.BACKGROUND

Bureau of Immigration (BI and Bureau of Internal Revenue (BIR) signed a Joint Guidelines foreign nationals who intend to work,perform specific activities,and/or render services in the Philippines, whether in the context of an employment arrangement or otherwise. on the issuance of work and employment permits to foreign nationals. The Joint Guidelines clarified and harmonized existing regulations on the issuance of appropriate permits to all The Department of Labor and Employment (DOLE),Department of Justice (DOJ,

employment arrangement are required to secure a Special Working Permit (SWP) with the Bureau of Immigration(BI,provided that performance of work or service which constitutes Under the new guidelines, foreign nationals who will engage in work outside of an

practice of a regulated profession are required to secure a Special Temporary Permit (STP) with Professional Regulatory Commission (PRC. An SWP allows foreign national to work under a Tourist Visa (9A), provided that the validity of the contract is for only up to three months which may be extended for another three months.

but pending approval of Commonwealth Act (CA613,Sec.9g) work visa,foreign nationals shall secure a Provisional Work Permit (PWP) with the BI. Employment Permit (AEP)with the DOLE.Pending issuance of their AEP or with valid AEP Foreign nationals intending to engage in gainful employment shall apply for an Alien

employment in the country. Foreign nationals exempted from securing AEP are required to Philippines, though not an exclusive authority for a foreign national to work in the Philippines it is one of the requirements in the issuance of work visa (9g) to legally engage in gainful secure a Certificate of Exclusions with DOLE. An AEP authorizes a foreign national to engage in gainful employment in the

of Environment and Natural Resources (DENR) for geoscience and mining industry; the DOJ for nationalized or partially nationalized industries. Other agencies that issue working permit to foreign workers, include the Department BUREAUOF INTERNAL REVENUE NNNIT MAY 312019 9:4fA.M U

RECORDS MGT.DIVISION

B.DEFINITION OF TERMS

1. Alien Employment Permit or AEP --refers to a permit issued by the DOLE to foreign nationals pursuant to an employment arrangement with a Philippine-based company. after determination of the non-availability of a person in the Philippines who is competent, able,and willing at the time of application, to perform the services for which the foreign national is desired.

2.Provisional Work Permit or PWP -- refers to a permit to work issued by the BI which allows foreign nationals to engage in work pursuant to an employment arrangement pending issuance of their AEP or with valid AEP but pending approval of CA 613, Sec. 9g)work visa.

3. Special Temporary Permit or STP- refers to a permit issued by the Professional Regulation Commission to a foreign professional to practice in the Philippines for a limited period of time, subject to the limitations and conditions provided for by law.

4 Special Work Permit or SWP - refers to permit to work issued by the BI that allows

foreign national to engage in work outside of an employment arrangement.

C. REGISTRATION

Philippines, are required to secure their Taxpayer Identification Number (TIN) following existing related revenue issuances. Foreign nationals who are planning to work, engage in trade or business in the

withholding taxes on their income from sources within the Philippines. The withholding agent Sshall apply for the TIN in behalf of the Nonresident aliens not engaged in trade or business. under Executive Order No.98 (E.O.98 to the following Revenue District Offices (RDOs) prior to or at the time of the filing of their monthly withholding tax return. Nonresident aliens not engage in trade or business shall be issued a TIN for

Purpose of TIN PWP/AEP application shall go to the RDO having jurisdiction over the physical address RDO having jurisdiction over the physical address of the employer. Reminders: No alien individuals. shall be of the LT-employer. registered with LTAD/ELTRD/LTD- Cebu/LTD-Davao. The employer or withholding agent shall secure the TIN of these alien individuals manually from the RDO and will not use the eREG System. Place of Registration LT-employer E.O.98 TIN BUREAU OF INTERNALREVENUE DNNYIYTN 1.BIR Form No.1904 2. Photocopy of Passport: 3.Employment contractor Documentary requirements MAY'312019 indicating employment,compensation equivalent and other benefits. and Scope of duties. 9:4S AM. UA duration document of

SA KECS MST.DIVISION

Purpose of TIN application Place of Registration TIN Documentary requirements Swp** RDO No.39-South Quezon City E.O.98 1.BIR Form No.1904

2. Photocopy of Passport:

STP** RDO No.39-South Quezon City E.O.98 2.Photocopy of Passport BIR Form No.1904

Other purposes*s RDO No.39-South Quezon City E.0.98 2. Photocopy of Passport: BIR Form No.1904

Additional requirement,if applicable: Authorization letter indicating the name of the withholding agent and authorized representative and photocopy of government ID of the authorized person, in case of authorized representative.

**Foreign nationals who intend to work, engage in specific activities, Or render services outside of an employment arrangement as enumerated below, shall secure their TINs with RDO No. 39-Quezon City

a. Professional athletes, coaches, trainers and assistants b. International performers with excellent abilities; C. e Service suppliers coming primarily to perform temporary services and who do not Artists,performers and their staff,who perform before an audience for a fee,subject to compliance with the requirements of concerned agency, office or body; Treasure hunters authorized to search for hidden treasure with permit from the receive salary or other remuneration from a Philippine source other than expenses incidental to their temporary stay:

g.Foreign journalists practicing their profession or covering a specific event in the f h. Movie and television crews authorized to film in the country by the relevant Trainee/s assigned in government institutions, government owned and controlled concerned government agencies and instrumentalities; regulatory office, body or agency country:

m. Professionals; and k D Lecturers, researchers, trainers and others pursuing academic work, who are Consultants or specialists. corporations (GOCC), and private entities assigned in schools,universities,educational and research institutions, government Religious missionaries and preachers: agencies and other entities (with or without compensation); Commercial models and talents: Culinary specialists/Chef; BUREAU OF INTERNAL REVENUE DNTTYN MAY'312019 9:4s VhAQA A.M.

AUU u Foreign National with Working Visa (9g) RECORDS MGT.DIVISION

arrival shall be registered by their employer to the RDO having jurisdiction over the physical address of the said employer under the taxpayer type category of Employee. Foreign nationals who had been issued or holder of AEP or working visa (9g upon

issued a working visa (9g) upon arrival shall be registered to the RDO having jurisdiction over the place of business;or to the RDO having jurisdiction over the place of local residence in the case of practice of regulated profession, under the applicable taxpayer type. Foreign nationals who intends to work or engage in trade or business and had been

Registration Update

registered. In case of termination of employment, foreign nationals registered as Employee later on had been issued an AEP or working visa (9g), with proper authorization, shall update its registration information from E.O. 98 to Employee with the RDO where they had been shall update its registration with the BIR. Employers of foreign nationals with PWP who had been registered under E.O. 98 and

been issued a working visa (9g) shall apply for transfer of its registration information from practice of regulated profession. They shall update their registration and apply for business RDO No. 39 where they had been initially registered to the new RDO having jurisdiction over the place of place of business if engage in trade or business, or local residence in the case of registration, if applicable. Foreign nationals with SWP who had been registered under E.O. 98 and later on had

D.TAX TREATY

posted in the BIR website. Foreign nationals in the Philippines who are resident of countries business or are gainfully employed in the Philippines will depend on the provisions of the depending on facts as represented by the foreign national applicant. Philippine tax treaties. Currently, the Philippines has forty-three (43) effective tax treaties with which the Philippines have effective tax treaties may opt to file a Tax Treaty Relief set forth under Revenue Memorandum Order (RMO) No.72-2010 to avail of the benefits under the tax treaty. However, the tax liability of foreign nationals engaged in trade or applicable tax treaty.Moreover, the entitlement to tax treaty relief is on a case-to-case basis Application with the International Tax Affairs Division (ITAD)following the requirements Registered foreign nationals can avail of preferential tax rates under effective

E.EFFECTIVITY

This Order shall take effect immediately.

Aaesc BUREAU OF INTERNAL REVENUE NNIIYTN M 1 boe Commissioner of Internal Revenue CAESAR R.DULAY 025976

RECORDS MGT.DIVISION MCU Uta