Preferential tax rate/tax relief for non-resident clients

If there is an existing tax treaty between the Philippines and the country where the other party to the transaction resides, the applicable preferential tax rates under the treaty shall apply. Conversely, in the absence of such a treaty, the ordinary rates under Philippine tax laws particularly the Philippine Tax Code of 1997 shall apply.

Any availment of the tax treaty relief shall be preceded by an application covered by BIR Form No. 0901 ("Application for Relief from Double Taxation"). The application shall be filed at least fifteen (15) days before the proposed transaction. It shall be accompanied by supporting documents justifying the relief. Note that this is only applicable to tax on dividends.