Taxation Requirements For Foreigners Living In The Philippines

[Ynot]

I'm just wondering if you are a self funded retiree from another country living in the Philippines what are your taxation obligatons?

 

For example:  If I was aged 60, living in the philippines with my gf and I had a superannuation account in Australia which earnt me say $ 36,000 pa or $ 3000 AUD income per month and I transferred say $ 2000 AUD every month to a Philippines account, what are my taxation requirements in the Philippines?

Edited August 1, 2013 by Ynot

[Thomas]

(If I have understood corect.)

The Philippines DON'T demand any tax for money earned outside Phili even if you live (mainly) in Phili.

But they have taxes at things as:

/bank acounts in Phili

/estates

/when leaving to travel (with some exceptions)

 

And don't forget fees for e g VISA   :)

[robert k]

I'm just wondering if you are a self funded retiree from another country living in the Philippines what are your taxation obligatons?

 

For example:  If I was aged 60, living in the philippines with my gf and I had a superannuation account in Australia which earnt me say $ 36,000 pa or $ 3000 AUD income per month and I transferred say $ 2000 AUD every month to a Philippines account, what are my taxation requirements in the Philippines?

I'm not a tax specialist but I believe you would pay the tax in your home country, any tax that was due. I'm from the US and I don't think I am going to owe tax to the RP unless it be a pittance for any interest on my savings account as I don't intend to have any business. If the future wife has a business that actually earns money in the RP, that's her problem :)

[Bruce]

 

I'm just wondering if you are a self funded retiree from another country living in the Philippines what are your taxation obligatons?

 

For example:  If I was aged 60, living in the philippines with my gf and I had a superannuation account in Australia which earnt me say $ 36,000 pa or $ 3000 AUD income per month and I transferred say $ 2000 AUD every month to a Philippines account, what are my taxation requirements in the Philippines?

I'm not a tax specialist but I believe you would pay the tax in your home country, any tax that was due. I'm from the US and I don't think I am going to owe tax to the RP unless it be a pittance for any interest on my savings account as I don't intend to have any business. If the future wife has a business that actually earns money in the RP, that's her problem :)

 

 

Speaking of the US, if you are planning to leave the US for either the Philippines or for parts unknown, set up an address / P.O. Box in Florida or another state which has no state income tax! If you talk to a tax specialist, certain states are more retirement friendly tax wise than others. Invest a little time and then since you are moving out of the US any way, set up your 'home address' in one of the more tax friendly states. :tiphat:  

[Ynot]

Thanks for the info, Im aware of Australias requirements but was not sure of the RP's requirements. 

 

At "what point do you need to lodge  a tax return on any interest earnt from a RP bank account? 

 

Is there a minimum amount you must earn before you need to lodge a tax return.  

 

Are you classified as a resident for tax purposes if you live more than 183 days of the year in the Philippines, and therefore are treated differently for tax purposes than a "non resident"???

 

Any interest earnt on a bank account in the Philippines is technically meant to be declared as income in Australia, and any tax paid on it, is credited (offset) against any Australian tax raised on the income.   So if I was required to lodge a tax return in Australia and was deemed a resident there, and my tax rate was 38 cents in the dollar, and the philippines tax rate was only 25 cents in the dollar, then for every dollar earnt from the philippines i would have to pay tax on the difference between 38 cents and 25 cents per dollar. 

 

If on the other hand i was deemed to be treated as a non residnet for tax purposes in Australia, my tax rate would be a lot higher.

 

I just wanted to know my tax obligations in the philippines and it sounds like my Australian income would be exempt from tax in the philippines, but my income earnt from bank accounts in the philippines would be subject to tax in the Philippines.

[Ynot]

Do they have death duties??  I notice Thomas mentions "Estates"is that a tax on your estate when you pass away??

[robert k]

Do they have death duties??  I notice Thomas mentions "Estates"is that a tax on your estate when you pass away??

I think your heirs might have inheritance tax if you actually have real property and not just chattel. You could own 40% of a piece of real estate and you would have property taxes, "estate" tax. I don't know if farms are exempt, I haven't gotten that far into it yet.

[earthdome]

At "what point do you need to lodge  a tax return on any interest earnt from a RP bank account?    Is there a minimum amount you must earn before you need to lodge a tax return.  

 

PI banks automatically take out any taxes from earned interest. So you don't have to concern yourself on filing any taxes in the PI for just a bank account.

[Thomas]

 

Do they have death duties??  I notice Thomas mentions "Estates"is that a tax on your estate when you pass away??

I think your heirs might have inheritance tax if you actually have real property and not just chattel. You could own 40% of a piece of real estate and you would have property taxes, "estate" tax. I don't know if farms are exempt, I haven't gotten that far into it yet.

Sorry I ment Real Estate,

but taxes on inheritances are corect too  :)

 

Yes, foreigners can own 40% of a Real Estate  with land through a company (IF the company need land for it's business)

but a foreigner can have 100 % of a house on leased land. (And I believe 100 % of a condonium.)