Amending Certain Provisions of Revenue Regulations No. 1-2011 Dated February 24, 2011

August 17, 2012 REVENUE REGULATIONS NO. 11-12 SUBJECT : Amending Certain Provisions of Revenue Regulations No. 1-2011 Dated February 24, 2011 TO : All Internal Revenue Officials, Employees and Others Concerned Pursuant to the provisions of Sections 244 and 245 of the National Internal Revenue Code of 1997, as amended, these Regulations are hereby promulgated to amend Section 3 of Revenue Regulations (RR) No. 1-2011. Section 3 of RR No. 1-2011 is hereby amended to read as follows: "Section 3. Tax Treatment. xxx xxx xxx C) Other Taxes and Fees: xxx xxx xxx The remittances of all OCWs or OFWs, upon showing of the OEC, valid Overseas Workers Welfare Administration (OWWA) Membership Certificate, or electronic receipt (e-receipt) issued by POEA , by the OCWs or OFW beneficiary or recipient, shall be exempt from the payment of documentary stamp tax (DST) as imposed under Section 181 of the National Internal Revenue Code of 1997, as amended. For this purpose, in addition to the original copy, a duplicate copy or a certified true copy of the valid proof of entitlement referred to above shall be secured by the OCW or OFW from the POEA or OWWA, which shall be held and used by his/her beneficiary in the availment of the DST exemption. IEcDCa In case of OCWs or OFWs whose remittances are sent through the banking system, credited to beneficiaries or recipient's account in the Philippines and withdrawn through an automatic teller machine (ATM), or sent through non-bank money transfer agents , it shall be the responsibility of the OCW or OFW to show the valid proof of entitlement when making arrangement for his/her remittance transfers. xxx xxx xxx D) Monitoring Local banks and non-bank money transfer agents are hereby required to document remittances made by OCWs or OFWs following the format below, for monitoring purposes: OFW Remittances for the First Quarter of 2012 (Exempt from DST imposed under Sec. 181 of the NIRC, as amended, per R.A. No. 10022) Name of Name of Amount Proof of Date of Transaction OCW/OFW Recipient (in Peso or Entitlement to Sender Peso DST exemption Remittance Encashment Equivalent) (i.e., OEC, Date Date e-receipt, or OWWA Membership Certificate) 1. Juan Dela Cruz Jane Dela Cruz 20,000 **** Feb. 1, 2012 Feb. 1, 2012 **** [Indicate Control Number provided by the Philippine Overseas Employment Administration (POEA)] The above information is required to be furnished to the Revenue District Office or Audit Division under the Large Taxpayers Service where the banks and non-bank money transfer agents are registered on a quarterly basis, to be submitted on or before the twentieth (20th) day following the close of the quarter". ACTEHI SECTION 2. Repealing Clause. All revenue issuances and parts thereof which are inconsistent with these Regulations are considered revoked, repealed or modified accordingly. SECTION 3. Effectivity. These Regulations shall take effect after fifteen (15) days from date of publication in a newspaper of general circulation. (SGD.) CESAR V. PURISIMA Secretary of Finance Recommending Approval: (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue Published in Manila Bulletin on August 24, 2012.