Entry into Force, Effectivity, and Applicability of the Protocol Amending the Philippines-New Zealand Tax Treaty

February 24, 2016 REVENUE MEMORANDUM CIRCULAR NO. 032-16 SUBJECT : Entry into Force, Effectivity, and Applicability of the Protocol Amending the Philippines-New Zealand Tax Treaty TO : All Internal Revenue Officers, Employees and Others Concerned For the information and guidance of all internal revenue officers, employees and others concerned: The Protocol Amending the Convention between the Republic of the Philippines and the Government of New Zealand for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income ("Philippines-New Zealand Tax Treaty") has entered into force on 02 October 2008. Pursuant to Article VI thereof, the provisions of the Protocol shall have effect in respect of taxes covered by the said Protocol, including taxes withheld at source, for any taxable period beginning on or after the first day of January 2009. Tax Treaty Relief Applications (TTRA) invoking the Protocol amending the Philippines-New Zealand Double Taxation Agreement should be filed with and addressed to the International Tax Affairs Division (ITAD) at Room 811, Bureau of Internal Revenue, National Office Building, Diliman, Quezon City, Philippines. For this purpose, the New Zealand resident income earner or an authorized representative of the latter should file a duly accomplished BIR Form No. 0901 (Application for Relief from Double Taxation) together with the required documents specified at the back of the Form, pursuant to Revenue Memorandum Order (RMO) 72-2010 . This Circular should be given the widest publicity possible. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ATTACHMENT Kagawaran ng Ugnayang Panlabas Department of Foreign Affairs Office of Legal Affairs October 2, 2008 Hon. Lilian Hefti Commissioner Bureau of Internal Revenue BIR National Office Bldg., Agham Road, Diliman, Quezon City Madam : The Department is pleased to inform your Office that the Protocol Amending the Convention between the Government of the Republic of the Philippines and the Government of New Zealand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income , which was signed on 21 February 2002, was ratified by the President on 08 March 2005 and concurred in by the Senate, through Senate Resolution No. 118 on 15 September 2008. The Department has also notified the authorities of the New Zealand on the completion of RP's domestic requirements and is awaiting a similar notification from New Zealand in order for the Protocol to enter into force, pursuant to Article VII thereof. The Department shall inform your Office as soon as the Protocol enters into force. Enclosed are certified true copies of the Protocol's Instrument of Ratification and Senate Resolution No. 118 for your reference and information. With assurances of continued cooperation on matters of mutual concern. Very truly yours, For the Secretary of Foreign Affairs: (SGD.) JESUS I. YABES Acting Assistant Secretary MALACAANG MANILA INSTRUMENT OF RATIFICATION TO WHOM THESE PRESENTS SHALL COME, GREETINGS: KNOW YE, THAT WHEREAS, the Protocol Amending the Convention between the Government of the Republic of the Philippines and the Government of New Zealand for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income , was signed in Wellington, New Zealand on 21 February 2002; WHEREAS, the Protocol , consisting of seven (7) articles, amends the Convention between the Government of the Republic of the Philippines and the Government of New Zealand for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income signed by the Parties on 29 April 1980; WHEREAS, the amendments include elimination of economic double taxation for associated enterprises, a ten (10) percent tax on interest earnings, a fifteen (15) percent tax on royalties and a tax credit on dividends paid by Philippine companies to New Zealand companies; CAIHTE WHEREAS, Article VII of the Protocol provides that it shall enter into force on the date of the later notification in writing by the Parties, through diplomatic channels, indicating compliance with the constitutional requirements for its entry into force; NOW, THEREFORE, be it known that I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, after having seen and considered the aforementioned Protocol Amending the Convention between the Government of the Republic of the Philippines and the Government of New Zealand for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income , do hereby ratify and confirm the same and each and every Article and Clause thereof. IN TESTIMONY WHEREOF, I have hereunto set my hand and caused the seal of the Republic of the Philippines to be affixed. GIVEN under my hand at the City of Manila , this 8th day of March in the year of Our Lord two thousand and five. BY THE PRESIDENT: (SGD.) ALBERTO G. ROMULO Secretary of Foreign Affairs SENATE RESOLUTION NO. 118 RESOLUTION CONCURRING IN THE RATIFICATION OF THE PROTOCOL AMENDING THE CONVENTION BETWEEN THE REPUBLIC OF THE PHILIPPINES AND THE GOVERNMENT OF NEW ZEALAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME WHEREAS, the Protocol Amending the Convention between the Republic of the Philippines and the Government of New Zealand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income was signed in Wellington, New Zealand on 21 February 2002; WHEREAS, the Protocol , consisting of seven (7) articles, amends the Convention between the Government of the Republic of the Philippines and the Government of New Zealand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income signed by the Parties on 29 April 1980; WHEREAS, the amendments under the Protocol eliminate economic double taxation for associated enterprises or the taxation of the same income in the hands of different persons. It also provides for a tax of ten (10) percent on interest earnings which could encourage New Zealand companies to grant loans to Philippine companies and encourage deposits in local banks. Amendments to taxes on royalties as well as granting of a credit on taxes payable on dividends paid by the Philippine companies to New Zealand companies are also provided in the Protocol ; WHEREAS, in a hearing conducted by the Committee on Foreign Relations on 8 May 2008, representatives of the Department of Foreign Affairs (DFA), Bureau of Internal Revenue (BIR), Philippine Association of Service Importers (PASEI), and Overseas Workers Welfare Administration (OWWA), and the Australian-New Zealand Chamber of Commerce Philippines, Inc. (ANZCHAM) endorsed the concurrence in the ratification of the Protocol ; WHEREAS, pursuant to the Constitution, Article 7, Section 21, "No treaty or international agreement shall be valid and effective unless concurred in by at least two-thirds of all the Members of the Senate": Now, therefore, be it Resolved , That the Senate of the Philippines concur, as it hereby concurs, in the ratification of the "Protocol Amending the Convention between the Republic of the Philippines and the Government of New Zealand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income". Adopted, (SGD.) MANNY VILLAR President of the Senate This Resolution was adopted by the Senate on September 15, 2008. (SGD.) EMMA LIRIO-REYES Secretary of the Senate Protocol Amending the Convention between the Republic of the Philippines and the Government of New Zealand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income February 21, 2002