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BIR exempts stranded aliens from income tax payments

The Bureau of Internal Revenue (BIR) has exempted foreign workers stranded in the country due to corona virus pandemic from paying income tax even if they still perform jobs for their companies.

BIR Commissioner Caesar Dulay stated in Revenue Memorandum Circular No. 83-2020 that the presence of the overstaying aliens will be ignored provided they leave the country after the lifting of the travel restrictions.

The BIR chief explained the continued stay of these foreigners has ” an impact on the application of relevant treaty provisions and the allocation of taxing rights between treaty partners.”

The Philippines has signed separate tax treaty agreements with more than 40 countries, which provide among others the work-stay schedule of alien  workers without being subject to taxation, say, 90 days for American citizens.

The circular said the tax exemption privilege can be enjoyed if the alien or his company submits to the bureau certain documents like the authenticated sworn certification of the facts of his presence in the country.

He must also present the true copy of his flight itinerary and the travel advisory on the cancellation of flight issued by the airline company.

The circular was issued to unburden foreign from applying and filing financial returns in this period of unprecedented health crisis.

Source: Manila Bulletin (

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