Deutsche Bank Ag Manila Branch vs. Commissioner of Internal Revenue (CIR) Summary

DEUTSCHE BANK AG MANILA BRANCH, Petitioner, — versus — COMMISSIONER OF INTERNAL REVENUE, Respondent.

G.R. No. 188550 | 2013-08-19

Benefits of tax treaty; preferential tax rate of 10% branch profit remittance tax (BPRT) in accordance with the RP-Germany Tax Treaty
Pacta sunt servanda
Failure to strictly comply with the BIR requirement to file a tax treaty relief application (TTRA) 15 days prior to availing the provisions of a tax treaty, should not deprive a taxpayer of the benefits of a tax treaty
A minute resolution is not a binding precedent
Prior application with ITAD for a tax treaty relief is not mandatory; noncompliance with the 15-day period for prior application does not divest entitlement to the tax treaty relief

FIRST DIVISION

DECISION

SERENO, CJ:

This is a Petition for Review 1 filed by Deutsche Bank AG Manila Branch (petitioner) under Rule 45 of the 1997 Rules of Civil Procedure assailing the Court of Tax Appeals En Banc (CTA En Banc) Decision 2 dated 29 May 2009 and Resolution 3 dated 1 July 2009 in C.T.A. EB No. 456.

THE FACTS

In accordance with Section 28(A)(5) 4 of the National Internal Revenue Code (NIRC) of 1997, petitioner withheld and remitted to respondent on 21 October 2003 the amount of PHP 67,688,553.51, which represented the fifteen percent (15%) branch profit...