BIR asks alien workers to register to avail lower tax payments

Published November 3, 2019, 12:56 PM

by Patrick Garcia

By Jun Ramirez

The Bureau of Internal Revenue (BIR) has asked foreign nationals working here to register to avail of the preferential or lower tax rate.

Bureau of Internal Revenue  (MANILA BULLETIN)
Bureau of Internal Revenue

The Revenue Memorandum Order No. 51-2019 signed by BIR Commissioner Cesar Dulay also included the estimated 140,000 alien employees of the Philippine Offshore Gaming Operators (POGO).

The Tax Code slaps unregistered foreign workers with 25 percent final withholding (income) tax on their earnings.

The directive stressed that the enrollment is limited only to resident citizens of 43 countries that signed separate bilateral tax treaty agreements with the Philippine government including China and other member countries of the Association of South East Asian Nations.

The treaty eliminates double taxation of individual and corporate taxpayers with branches here.

The accord also makes easier for member states to detect various tax evasion schemes employed by their citizens to reduce payments through mutual exchange of information.

The BIR’s international tax affairs division is tasked to handle the registration and issuance of the Tax Residence Certificate to applicants.