Another income tax filing season is over and the post-filing period is an opportune time to do housekeeping on accounting documents and records. Also, this gives us breathing room for updates on the latest tax issuances of the Bureau of Internal Revenue (BIR). One issuance that caught my attention recently is the BIR’s Revenue Memorandum Order No. (RMO) 8-2017 which will take effect on June 26, 2017. This amended the previous RMO (72-2010), which prescribes the guidelines and processes for tax treaty relief applications (TTRA). Compliance with the previous RMO was challenging to most taxpayers as it requires filing the TTRA and supporting documents with the BIR before the transaction (i.e. first taxable event). Under the RMO, failure to file the TTRA prevents taxpayers from claiming relief under the tax treaty.
May 172017