The taxation of cross-border transactions is complicated requiring an in-depth study of its tax implications. In international tax planning, these studies are normally undertaken in close coordination with tax advisers in other jurisdictions especially when it requires restructuring of transactions or in deciding for a tax efficient location.

The Philippines has a wide network of bilateral tax treaties with other countries. Foreign entities transacting with Philippine residents may be able to benefit from the provisions of existing tax treaties. For the application of the provisions of the tax treaty, the Philippine Tax Bureau requires that a confirmatory ruling be secured from them.

6.1 Application for Ruling Involving Availment of Tax Treaty Provisions

Application of preferential rates on withholding taxes on income payments to non-resident aliens and foreign corporations pursuant to tax treaties, or the application of any tax treaty provision may require an application for a ruling from the tax bureau. We can assist you in securing the required ruling.

6.2 Expatriate Services

Employers are normally faced with tax, social security, immigration and labor concerns with the laws of the host country when sending employees cross-border. We can advise companies of the domestic rules that apply to both the employee and the employer, develop and review secondment arrangements, identify issues on taxation, social security, labour and immigration that may apply to the expatriate. We can also prepare and file income tax returns, calculate the tax advantage under tax equalization programs. We can do other allied services related to the stay of the expatriate in the host country.

6.3 International Tax Advisory

On transactions involving foreign entities, or on cross-border transactions, we can help you study the tax implications or determine the most efficient tax structure, and whether these can avail of tax treaty benefits or tax exemptions under Philippine laws. We can coordinate with our counterparts in other countries should the study require understanding the taxation of other countries.