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TAX TREATY BENEFITS & OTHER RELEVANT TAX UPDATES

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

What is the best proof of residency for the availment of tax treaty benefits?

a)

Tax Residency Certificate (TRC)

b)

BIR Ruling

c)

Tax Treaty

d)

Secretary's Certificate

2.

What BIR office has original jurisdiction over matters involving the application and interpretation of tax treaties?

a)

International Tax Affairs Division (ITAD)

b)

Law & Legislative Division

c)

Litigation Division

d)

RDO

3.

In general, if the treaty rate was applied on the income of the nonresident, who should file a request for confirmation (RFC) that the withholding tax rates applied on that income was proper?

a)

income payor, domestic or foreign

b)

income payee or the non-resident

c)

any person

d)

none of the above

4.

How much is the penalty for failure to file a Certificate of Residence for Tax Treaty Relief (CORTT) Form for dividends, interests and royalties paid?

a)

P1,000

b)

P10,000

c)

P50,000

d)

P20,000

5.

For dividends, what Audited Financial Statements (AFS) will be attached to the RFC or TTRA?

a)

CTC of the duly filed AFS as of the taxable year immediately preceding the date of declaration

b)

Unaudited FS

c)

Unaudited Interim FS

d)

latest AFS

6.

What document will be issued for approved TTRAs and RFCs?

a)

BIR Ruling

b)

Certificate of Entitlement to Treaty Benefit (COE)

c)

Certificate of Availment

d)

ITAD Ruling

7.

All are the revenue issuances issued providing the guidance on the filing of request for confirmation, tax treaty relief applications and tax sparing applications, except:

a)

RMO 14-2021

b)

RMO 77-2021

c)

RMC 20-2022

d)

RMC 16-2022

8.

What are the two types of Certificate of Entitlement to Treaty Benefits (COE) to be issued by the BIR, through the ITAD?

a)

COE for recurring transactions intended for dividends, branch profit remittances, interests, royalties...

b)

COE which is limits the applicability of the ruling to a particular transaction or period and is usually issued for business profits, capital gains...

c)

none of the above

d)

Statement 1 & 2 are correct

9.

With regard to the annual updating that is required for long-term contract of services, the taxpayer shall submit the following except one.

a)

TRC of the nonresident for the relevant year

b)

Sworn Certification

c)

Certificate of Completion of the project duly signed by the income recipient and duly accepted by the domestic income payor, if applicable

d)

CTC of the long-term contract

10.

What BIR Form shall be used by the withholding agent or income payor for Dividends?

a)

BIR Form No. 0901-D

b)

BIR Form No. 0901-PR

c)

BIR Form No. 0901-I

d)

BIR Form No. 0901-R