QuestionsQuestions (BIR REVENUE MEMORANDUM CIRCULAR NO. 76-91)
To prescribe the exchange rate rules for converting U.S. dollar and other foreign currencies to Philippine pesos for the collection of income taxes of non-resident citizens, supplementing RMC No. 77-89.
The average interbank reference rate for the taxable year when the gross income and the deductions were earned and incurred, respectively.
From the “U.S. Dollar Rates of Selected Currencies” obtainable from the Treasury Department of the Central Bank of the Philippines; if the foreign currency is not listed, the International Tax Affairs Division furnishes the reference rate.
Amounts converted to U.S. dollars using the taxable year’s average interbank reference rate are subsequently converted to Philippine pesos using the average peso/dollar interbank reference rate during the same taxable year.
P24.3105 as the equivalent of one (1) U.S. dollar.
The prevailing peso/dollar interbank reference rate at the time the tax liability is actually paid.
Daily in selected national newspapers.
Under paragraph (d), the U.S. dollar tax liability is converted to the other foreign currency using the prevailing exchange rate in the foreign post at the time of actual payment.
The prevailing interbank reference rate at the time of assessment or preparation of the Transcript of Assessment.
By deducting from the income tax due in U.S. dollars per audit any previous income tax payments also stated in U.S. dollars.
It determines which taxable year’s average interbank reference rates will be applied to the conversion of gross income and deductions.
It covers both: gross income and deductions from gross income earned/incurred in foreign currency.
All previous revenue memoranda and portions thereof inconsistent herewith are amended or modified accordingly.
Commissioner Jose U. Ong; adopted on 12 September 1991.
Because it adds or clarifies specific exchange rate rules to those already provided in RMC No. 77-89 for the relevant tax conversion purposes.