Revocation of BIR Ruling DA(FIT-002) 054-2010 which subjected onshore income of FCDU/OBU to 5% GRT
BIR Ruling No. 51-2010
dated September 7, 2010
The Bureau of Internal Revenue (BIR) has revoked its previous ruling which subjected the onshore interest income to be derived by the foreign currency deposit units (FCDUs) from the 3-year and 5-year Multi-Currency Retail Treasury Bonds for Overseas Filipino Workers (rTBs) issued by the Bureau of Treasury to the 5% gross receipts tax, aside from the 10% final withholding tax.
The BIR now clarifies that the said previous ruling is contrary to the provisions of Republic Act No. 9294, which restored the exemption of FCDUs from all taxes on its foreign currency transactions, except for the 10% final withholding tax on onshore income. With the said amendment, the tax exemption enjoyed by FCDUs under the 1977 Tax Code was clearly restored, which includes exemption from the gross receipts tax.
Hence, the onshore interest income to be derived by FCDUs from the said rTBS issued by the Bureau of Treasury is exempt from the 5% gross receipts tax.
Please be advised accordingly.
- Atty. Benedicta Du-Baladad, Managing Partner and CEO of Du-Baladad and Associates presented to Insurance Commissioner Emmanuel F. Dooc its newly published book entitled “Taxation of Insurance Companies in the Philippines”.
- BDB Law Partners and Associates
- Managing Partner Dick Du-Baladad speaks at a forum on Estate Tax Planning conducted by the Financial Executives of the Philippines (FINEX). September 11, 2013, Dusit Hotel, Makati City.
- WTS Singapore August 2013
- WTS Singapore August 2013
- “Dick Du-Baladad receives as Chair of Management Association of the Philippines’ Tax Committee, a plaque of appreciation from the Bureau of Internal Revenue (BIR) for participating in the multi-sectoral evaluation of the BIR-Performance Governance System”
- The Managing Partner and CEO Dick Du-Baladad gives a briefing on “Tax Updates” to members of the Financial Executives of the Philippines (FINEX), together with Deputy Commissioner Nelson Aspe of the Bureau of Internal Revenue.
- Managing Partner and CEO Dick Du-Baladad gives a briefing on “Tax Updates” to members of the Financial Executives of the Philippines (FINEX), together with Deputy Commissioner Nelson Aspe of the Bureau of Internal Revenue.
- Dick Du-Baladad briefed the members of the Tax Management Association of the Philippines (TMAP) on the new rules on taxation of interest income on financial instruments.
- News Analysis: Philippine Transfer Pricing Rules Put Companies on Notice
- Courtesy Call to BIR Commissioner Kim Jacinto Henares
- WTS Conference, Warsaw, Poland, (September 13-15, 2012)
- Transfer Pricing Law Review Sought
- Tax expert shares ways to maximize tax savings
- Dick Du-Baladad updates the CPAs in Public Practice (ACPAPP) on latest revenue bills and court decisions.
- Dick Du-Baladad speaks before the Philippine Association of Management Accountants (PAMA) at its Annual Convention in Baguio City.
- Senior partner Fulvio Dawilan was recently licensed and admitted to practice as an Attorney and Counselor at Law in all the courts of the State of New York.
- Senior Partners Dick Du-Baladad and Fulvio Dawilan presents before the legislative committee of BPAP the impact of Rev. Reg. 5-11.
- BDB LAW admitted as member of World Tax Service (WTS) Alliance
- New guidelines in the filing of late or out-of-district returns