BIR sets ITR deadline for local workers in int’l orgs

MANILA, Philippines - Filipinos employed by foreign governments, embassies and international organizations who have yet to file their income tax returns have until May 15 to do so without being subjected to surcharges and penalties.

The Bureau of Internal Revenue issued Revenue Regulations No. 7-2013, laying down the policies and guidelines for the abatement of penalties and interest which will be imposed on the taxes due from the concerned individuals for late filing of their ITRs.

The waiver of penalties was conditioned on compliance with several requirements which include the submission by foreign governments/embassies, diplomatic missions and international organizations of a summary list of their employees as of Dec. 31, 2012 on or before May 10 this year.

Only those employees who are included in the list may avail of abatement of penalties and interests if they file their respective ITRs on or before May 15, said BIR commissioner Kim Henares.

Under Section 23 of the National Internal Revenue Code, a Philippine resident-citizen is taxable on all income derived from sources within and outside the Philippines.

The BIR earlier issued a circular, emphasizing that the exemption from withholding taxes on the compensation of officials and employees of foreign governments/embassies, missions and select international organizations only applies to those individuals who were expressly and unequivocally identified in international agreements or laws.

Henares advised the qualified individuals to file their returns the soonest possible time with complete attachments to avoid the deadline rush and have enough time to complete the process.

International organizations whose non-Filipino employees enjoy immunity from taxation in accordance with the provisions of related international agreements or domestic laws need not submit information on their non-Filipino employees.

The BIR has the power to abate the payment of tax liabilities under Section 40 of the tax code. 

The issuance of the regulations was due to numerous requests from embassies and international organizations.