Working as freelance in PH.

[f5m9v6]

I've been informed the BI has corrupt people working there.
And that it's illegal to work on a tourist visa.

Now we all know that doing freelance work while a tourist is common all over the world.
Just don't get caught by a corrupt Philippine BI official.  There is NO getting out of it IF they set their sights on you.  This would (probably) only happen if you pissed someone off and they knew the right people to go after you.  An ex wife or ex gf is most common.  A competitor in your line of work is common.  I hope you get the picture.

Working as a freelancer my TAX  is going to be deducted to the TAX authority of my country.
I don't care about doing any work for any Filipino entity.

Is this still illegal?
 

[Kingpin]

45 minutes ago, f5m9v6 said:

it's illegal to work on a tourist visa.

Is this still illegal?
 

Yes you want 9g not 9a

[f5m9v6]

6 minutes ago, Kingpin said:

Yes you want 9g not 9a

9g will not work as i have not been granted it.

What about just working while extending the tourist visa but no one knowing about it since it's not tied to Philippines tax authorities?

If they ask me source of income, i just say, savings!

Is this a serious issue?

[Mike J]

 

14 minutes ago, f5m9v6 said:

9g will not work as i have not been granted it.

What about just working while extending the tourist visa but no one knowing about it since it's not tied to Philippines tax authorities?

If they ask me source of income, i just say, savings!

Is this a serious issue?

You are not allowed to work on a tourist visa (9A).   You can work on a 9G but you need to be sponsored by a corporation that can show the skills required are not available or in short supply locally.

What about . . . It would depend a lot on the type of work.  Some individuals work remotely via computer for businesses that are outside of the Philippines.  This appears to be legal but I am no expert in the law.  

If they ask . . . NEVER lie to a Philippine official.  If they are asking you questions, they have suspicions or information already.

Yes it is a serious issue.  The least you could expect would be to have your visa canceled, deported, and possibly blacklisted to future entry.

[f5m9v6]

2 minutes ago, Mike J said:

You are not allowed to work on a tourist visa (9A).   You can work on a 9G but you need to be sponsored by a corporation that can show the skills required are not available or in short supply locally.

 

I tried, but did not work so far.
 

2 minutes ago, Mike J said:

What about . . . It would depend a lot on the type of work.  Some individuals work remotely via computer for businesses that are outside of the Philippines.  This appears to be legal but I am no expert in the law.  

 

 Yes this is exactly what i am intending to do. Provide services as an individual entrepreneur with activity open in my country in Europe.
But residing in PH.
Isn't this legal?

I will check this with BI.
 

2 minutes ago, Mike J said:

If they ask . . . NEVER lie to a Philippine official.  If they are asking you questions, they have suspicions or information already.

Yes it is a serious issue.  The least you could expect would be to have your visa canceled, deported, and possibly blacklisted to future entry.

So even if i messed up, it's better to say the truth?

 

[Mike J]

17 minutes ago, f5m9v6 said:

I tried, but did not work so far.
 

 Yes this is exactly what i am intending to do. Provide services as an individual entrepreneur with activity open in my country in Europe.
But residing in PH.
Isn't this legal?

I will check this with BI.
 

So even if i messed up, it's better to say the truth?

 

So even . . . In my opinion yes, tell the truth about where you are earning income.  Tell them you thought is was okay, etc., because (in my opinion) what you describe is already happening a lot and is legal as far as I know.  Lies never work out in the long term.   If BOI were suspicious and you lied you would might cause them to dig deeper into your financial affairs.  Just my opinions of course.

[Dave Hounddriver]

2 hours ago, f5m9v6 said:

freelance work

That covers such a large genre that you may wish to consult a lawyer if you want the precise details.  In the event your freelance work is in a grey area then even lawyers may not know.

Just last month, the Philippine Star newspaper had an article on just one type of freelance work.  Way too much info to get an accurate assessment, but here is a segment of it and a link to get you started in your research.  I cannot confirm if this applies only to resident citizens or to all residents, temporary or not.  In the end, it will be totally up to you what you decide to do and you will be the sole recipient of any penalties or fines that come your way.  By this I mean, no one here can give you permission to do freelance work and no one here can protect you from any penalties or fines that may be assessed and no one here is going to pay the fine or do the time for you if you make the wrong choice.  Best of luck.

Quote

 

. . . What the Tax Code says 

All content creators, bloggers or social media influencers have tax obligations to the BIR, according to a memorandum the bureau issued on Aug. 16, 2021.

The BIR has a detailed definition for the term “social media influencers” in the circular which reads:  

“…all taxpayers, individuals or corporations, receiving income, in cash or in kind, from any social media sites and platforms (YouTube, Facebook, Instagram, Twitter, TikTok, Reddit, Snapchat, etc.) in exchange for services performed as bloggers, video bloggers or “vloggers” or as an influencer, in general, and from any other activities performed on such social media sites and platforms.”

According to the BIR, they are liable for two types of taxes—income tax and business tax (percentage tax or value-added tax). . . .

Source:  Taxing the Influencer -  https://interaksyon.philstar.com/trends-spotlights/2022/10/27/232784/taxing-the-influencer-diving-into-tax-obligations-of-content-creators-in-the-philippines/

 

 

 

[Old55]

It's been the policy of this forum to respect Filipino laws. We are guests living or visiting Philippines and should follow the rules and laws of the land. 

 

Edited November 30, 2022 by Old55

[Kingpin]

 

4 hours ago, f5m9v6 said:

I will check this with BI.

Good idea. Common  sense says if your work has no connection to you residing in Philippines, it should be ok. Social media, because it is connected to you residing in the Philippines, is not ok. But common sense is irrelevant, see what the BI says and report back here.

[hk blues]

7 hours ago, f5m9v6 said:

Working as a freelancer my TAX  is going to be deducted to the TAX authority of my country.
 

It's really not as simple as that.  

I'm freelance but pay no tax to my country, instead I pay to the Philippines under the tax laws here and in the UK.  Plenty of people have to pay tax in both host and home country and hopefully tax treaties are in place to ensure double taxation does not happen but it's not always the case.

As pretty much everyone has said, seek advice form the BIR.  You may not like the answer they give, but at least you will know where you stand and can minimise any punishment or penalty.