Effectivity Date of the Provisions of the Philippines-Brunei Double Taxation Agreement

On 23 February 2024, the Bureau of Internal Revenue (“BIR”) released Revenue Memorandum Circular No. 30-2024 to announce that the Agreement between the Government of the Republic of the Philippines and the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion concerning Taxes on Income (“PH-Brunei Tax Treaty”) has entered into force on 25 January 2024. 

The provisions of the PH-Brunei Tax Treaty shall affect taxes withheld at source on income paid to non-residents on or after the first day of January in the calendar year next following that in which the treaty came into force, and in respect of other taxes, on income in any taxable year beginning on or after the first day of January in the calendar year next following that in which the treaty came into force. Accordingly, the treaty shall have effect on income derived from sources within the Philippines beginning 1 January 2025.

Tax Treaty Relief Applications or Requests for Confirmation invoking the provisions of the PH-Brunei Tax Treaty should be filed with and addressed to the International Tax Affairs Division. For this purpose, the concerned tax resident of Brunei, the income payor or withholding agent, or their duly authorized representative, should file a duly accomplished Application for Treaty Purposes (i.e., BIR Form No. 0901), together with the required documents, under Revenue Memorandum Order No. 14-2021, as clarified by Revenue Memorandum Circular No. 77-2021.