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Section 6. Section 25 of The NIRC, As Amended, Is Hereby Further Am - Ended To Read As Follows

This document amends Section 25 of the NIRC regarding taxation of nonresident alien individuals. It outlines the following: 1) It imposes a 15% tax on the income received by alien individuals employed by regional or area headquarters and regional operating headquarters established in the Philippines by multinational companies. 2) It imposes a 15% tax on the income received by alien individuals employed by offshore banking units established in the Philippines. 3) It imposes a 15% tax on the income received by alien individuals employed and assigned in the Philippines by foreign petroleum service contractors or subcontractors. 4) It specifies that the preferential 15% tax treatment will not apply to regional headquarters, regional operating

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Mamerto Egargo Jr.
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73 views2 pages

Section 6. Section 25 of The NIRC, As Amended, Is Hereby Further Am - Ended To Read As Follows

This document amends Section 25 of the NIRC regarding taxation of nonresident alien individuals. It outlines the following: 1) It imposes a 15% tax on the income received by alien individuals employed by regional or area headquarters and regional operating headquarters established in the Philippines by multinational companies. 2) It imposes a 15% tax on the income received by alien individuals employed by offshore banking units established in the Philippines. 3) It imposes a 15% tax on the income received by alien individuals employed and assigned in the Philippines by foreign petroleum service contractors or subcontractors. 4) It specifies that the preferential 15% tax treatment will not apply to regional headquarters, regional operating

Uploaded by

Mamerto Egargo Jr.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Section 6.

 Section 25 of the NIRC, as amended, is hereby further [Link] to read as follows:

"Sec. 25. Tax on Nonresident Alien Individual -

"(A) Nonresident Alien Engaged in Trade or Business Within the Philippines. - "x x x

"(B) Nonresident Alien Individual Not Engaged in Trade or Business Within the Philippines. -
"x x x

"(C) Alien Individual Employed by Regional or Area Headquarters and Regional Operating


Headquarters of Multinational Companies. - There shall be levied, collected and paid for
each taxable year upon the gross income received by every alien individual employed by
regional or area headquarters and regional operating headquarters established in the
Philippines by multinational companies as salaries, wages, annuities, compensation,
remuneration and other emoluments, such as honoraria and allowances, from such regional
or area headquarters and regional operating headquarters, a tax equal to fifteen percent
(15%) of such gross income: Provided, however, That the same tax treatment shall apply to
Filipinos employed and occupying the same position as those of aliens employed by these
multinational companies. For purposes of this Chapter, the term ‘multinational company’
means a foreign firm or entity engaged in international trade with affiliates or subsidiaries or
branch offices in the Asia-Pacific Region and other foreign markets.

"(D) Alien Individual Employed by Offshore Banking Units. - There shall be levied, collected
and paid for each taxable year upon the gross income received by every alien individual
employed by offshore banking units established in the Philippines as salaries, wages,
annuities, compensation, remuneration and other emoluments such as honoraria and
allowances, from such offshore banking units, a tax equal to fifteen percent (15%) of such
gross income: Provided, however, That the same tax treatment shall apply to Filipinos
employed and occupying the same position as those of aliens employed by these offshore
banking units.

"(E) Alien Individual Employed by Petroleum Service Contractor and Subcontractor. - An


alien individual who is a permanent resident of a foreign country but who is employed and
assigned in the Philippines by a foreign service contractor or by a foreign service
subcontractor engaged in petroleum operations in the Philippines shall be liable to a tax of
fifteen percent (15%) of the salaries, wages, annuities, compensation, remuneration and
other emoluments, such as honoraria and allowances, received from such contractor or
subcontractor: Provided, however, That the same tax treatment shall apply to a Filipino
employed and occupying the same position as an alien employed by petroleum service
contractor and subcontractor.

"Any income earned from all other sources within the Philippines by the alien employees
referred to under Subsections (C), (D), and (E) hereof shall be subject to the pertinent
income tax, as the case may be, imposed under this Code.

"(F) The preferential tax treatment provided in Subsections (C), (D), and (E) of this Section
shall not be applicable to regional headquarters (RHQs), regional operating headquarters
(ROHQs), offshore banking units (OBUs) or petroleum service contractors and
subcontractors registering with the Securities and Exchange Commission (SEC) after
January 1, 2018: Provided, however, That existing RHQs/ROHQs, OBUs or petroleum
service contractors and subcontractors presently availing of preferential tax rates for qualified
employees shall continue to be entitled to avail of the preferential tax rate for present and
future qualified employees."

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