BIR Ruling No. 052 10

September 7, 2010 BIR RULING NO. 052-10 Section 22 (E) BIR R!"in# No. 00$-%5 &'-2-%

SG* + o. 70 '" '/en!e 122 ti it 'ttention 'tt. L!i3 4o3e . 6errer rtner, 8 '9/i3or n9 '9/occ Gro!p Gent"emen   :i3 re;er3 to o!r "etter 9te9 9te9 4!ne %, 200% re"e9#e Ser/ice3 te. Lt9. (&e!t3c:e) ;or con?rmtion o; o!r opinion t:t t:e ;o""o>in# 6i"ipino 6i"ipino emp"oee3 o; &e!t3c:e >:o >ere 33i#ne9 bro9 ;or "e33 t:n 1@ 93 re 3ti"" to be cte#oriAe9 3 re3i9ent citiAen3 o; t:e :i"ippine3 3!bect to :i"ippine income t8 on income 9eri/e9 ;rom 3er/ice3 per;orme9 >it:in n9 o!t3i9e o; t:e :i"ippine3 1. :ri :ri3t 3top op:e :err R!9i R!9io o 2. 4o:n 4o:n Rom om! !"9 "9o o @. ic:e" ic:e""e "e ri rie e 'ce9 'ce9i"" i""  $. *o"t o"tir ire e N!Ce N!CeA A It i3 repre3ente9 t:t t:e3e 6i"ipino emp"oee3 >ere 33i#ne9 b t:eir emp"oer, &e!t3c:e to &e!t3c:e Bn ;or p!rpo3e3 o; trinin# n9 >or 3:9o>in# ;or  perio9 o; "e33 t:n 1@ 93, ;rom 'pri" 200 !nti" 'pri" 2007 n9 t:t in t:i3 re#r9, o!r c"ient >o!"9 "ie to 3ee certi?ction t:t t:e3e emp"oee3 re con3i9ere9 Dre3i9ent citiAen3D o; t:e :i"ippine3 3ince t:e 9i9 not ;"" !n9er t:e 9e?nition o; non-re3i9ent citiAen3 o; t:e :i"ippine3 ;or t:e c"en9r er3 200 n9 2007 p!r3!nt to Section 22 (E) o; t:e Ntion" Intern" Re/en!e o9e o; 1%%7. In rep", p"e3e be in;orme9 t:t !n9er !n 9er Section 22 (E) o; t:e 8 o9e, 3 men9e9, t:e term Dnon-re3i9ent citiAenD men3 1. One >:o e3tb"i3: e3tb"i3:e3 e3 to t:e 3ti3;c 3ti3;ction tion o; t:e t:e ommi33ione ommi33ionerr t:e ;ct o; o; :i3 p:3ic" pre3ence bro9 >it:  9e?nite intention to re3i9e t:erein. 2. ' citiAen citiAen "e/in# "e/in# t:e :i"ippine3 :i"ippine3 9!rin# t:e t8b"e t8b"e er er to re3i9e bro9, bro9, eit:er 3 n immi#rnt or ;or emp"oment on  more or "e33 permnent b3i3 n9 contrct >orer3 >:o3e contrct o; emp"oment re rene>e9 ;rom time to time >it:in or 9!rin# t:e t8b"e er !n9er 3!c: circ!m3tnce3 3 to reit: re3pect to t:e income :e 9eri/e9 ;rom ;orei#n 3o!rce3 ;rom t:e 9te :e ct!"" 9eprte9 ;rom t:e :i"ippine3. @. ' citiAen citiAen >:o :3 been pre/io!3" pre/io!3"  con3i9ere9 con3i9ere9 3 non-re3i9e non-re3i9ent nt citiAen citiAen n9 >:o rri/e3 in t:e :i"ippine3 t n time 9!rin# t:e t8b"e er to re3i9e permnent" in t:e :i"ippine3 3:"" "ie>i3e be trete9 3  non-re3i9ent citiAen ;or t:e t8b"e er in >:ic: :e rri/e3 in t:e :i"ippine3 >it: re3pect

to :i3 income 9eri/e9 ;rom 3o!rce3 bro9 !nti" t:e 9te o; :i3 rri/" in t:e :i"ippine3. $. :e t8per t8per 3:"" 3!bmit 3!bmit proo; proo; to t:e ommi33ioner ommi33ioner o; Intern" Intern" Re/en!e Re/en!e to 3:o> :i3 intention o; "e/in# t:e :i"ippine3 to re3i9e permnent" bro9 or to ret!rn to n9 re3i9e in t:e :i"ippine3 3 t:e c3e m be ;or p!rpo3e3 o; t:e 3i9 Section o; t:e 8 o9e. S!c: bein# t:e c3e, n9 3ince t:e ;ore3i9 emp"oee3 >ere 33i#ne9 bro9 ;or "e33 t:n 1@ 93 9!rin#  t8b"e er, t:e 9o not t:ere;ore, ;"" >it:in t:e p!r/ie> o; t:e bo/e 9e?nition 9 e?nition o; non-re3i9ent citiAen. 'ccor9in#", t:i3 Oce i3 o; t:e opinion 3 it :ereb :o"93 : o"93 t:t t:e 3i9 emp"oee3 emp "oee3 re re3i9ent citiAen3. Fence, t:eir compen3tion income e/en i; pi9 b  ;orei#n emp"oer t:ro!#: n #ent in t:e :i"ippine3 re 3!bect to t:e t8 impo3e9 !n9er Section S ection 2$ (') o; t:e 8 8 o9e, 3 men9e9. (BIR R!"in# No. 00$-%5 9te9 4n!r , 1%%5, n9 &'-2-% 9te9  4!ne 2$, 1%%)  :i3 r!"in# i3 bein# i33!e9 on t:e b3i3 o; t:e ;ore#oin# ;ore#oin# ;ct3 3 repre3ente9. Fo>e/er, i; !pon in/e3ti#tion, it >i"" be 9i3c"o3e9 t:t t:e ;ct3 re 9ierent, t:en t:i3 r!"in# 3:"" be con3i9ere9 3 n!"" n9 /oi9. *er tr!" o!r3,

(SG&.) =I S. 4'INO-FEN'RES ommi33ioner B!re! o; Intern" Re/en!e