Working as freelance in PH.

[f5m9v6]

9 hours ago, hk blues said:

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.

I will abide to what the BOI says.

Edited November 30, 2022 by f5m9v6

[Mike J]

8 hours ago, f5m9v6 said:

I will abide to what the BOI says.

BOI can tell you if you can work as a freelancer.  BIR (Bureau of Internal Revenue) are probably the ones who would know if taxable in the Philippines.

[Dave Hounddriver]

6 minutes ago, Mike J said:

BOI can tell you if you can work as a freelancer.  BIR (Bureau of Internal Revenue) are probably the ones who would know if taxable in the Philippines.

BOI = Bureau of Investments, who work closely with Trade and Industry.  I think it is their permission you need to get one of those SIRV Visas for starting a business that employees 15 Filipinos.

However, perhaps you both mean BI = Bureau of Immigration who will probably refer you to the DOLE = Department of Labor and Employment who decides whether you can get a work permit.

And yes, the BIR will likely tell you to pay taxes, even if you don't need to, IMO.  It seems they would rather err on the side of money in their pockets rather than money in yours.

And I cannot be sure if there is corruption in any of those departments.  Its just by word of mouth that I know someone who knows someone who says its best to keep a low profile.

Suffice it to say you need permission from all pertinent agencies if you want all the i's dotted and t's crossed.

That may be why a lot of fellows just marry a Filipina and get a marriage visa.  Then you can work as you like, subject to Executive Order No. 175, of course. (Link here for that one:   https://www.officialgazette.gov.ph/downloads/2022/06jun/20220627-EO-175-RRD.pdf )

[JJReyes]

Which country you pay income taxes depends on where the money was earned.  If the freelance work was paid in the Philippines, then you have to declare the amount to the B.I.R.  The complication is international tax treaties between two countries.  For example, American corporate executives sent to the Philippines are paid their main salary in the USA and a second amount for the local subsidiary.  The second amount is taxed by the B.I.R.

I believe what you are asking is about Digital Nomads.  Unfortunately, this is rather new and there are no clear rules.  Every country, of course, wants a piece of the pie including the B.I.R.  This will probably be sorted out at some future international taxation meeting. 

[hk blues]

6 hours ago, Dave Hounddriver said:

And yes, the BIR will likely tell you to pay taxes, even if you don't need to, IMO.  It seems they would rather err on the side of money in their pockets rather than money in yours.

I haven't found that at all.  It's not like they just stick a number on a piece of paper and you hand over the cash. It all has to be done with the proper documentation and forms so it's not so easy for them to just make it up as they go along.  

I've had  a fair bit of dealing with them and not found them unreasonable, often quiet the opposite then again I'm as honest as they come when it comes to government stuff. That said, I'm still waiting on a refund from 2017 so it's not all sweetness and light!

[hk blues]

15 hours ago, f5m9v6 said:

I will abide to what the BOI says.

Don't.

The only authority who can properly advise you on tax are the BIR.  Talk to the BIR and follow their guidance and nobody else's when it comes to tax.

[Patryk]

On 11/30/2022 at 5:09 AM, f5m9v6 said:

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?
 

https://www.bir.gov.ph/index.php/tax-information/income-tax.html

If you are under a tourist visa I believe you don't need even to file income tax returns 
 

"Who are Required to File Income Tax Returns?

Individuals

• Aliens, whether resident or not, receiving income from sources within the Philippines" / as your income is from abroad"

I can't find information about foreign income for tourists, even if considered tax residents of PH, however, Seamans and OFW income abroad is not taxed. 

I think just don't get caught performing job duties in PH and insist that you do it only when you are abroad, but it would be nice to know if that's really how it works in practice.  I am afraid it can work like so many things here, it may vary depending on who you speak to. 

[hk blues]

19 minutes ago, Patryk said:

https://www.bir.gov.ph/index.php/tax-information/income-tax.html

If you are under a tourist visa I believe you don't need even to file income tax returns 
 

"Who are Required to File Income Tax Returns?

Individuals

• Aliens, whether resident or not, receiving income from sources within the Philippines" / as your income is from abroad"

I can't find information about foreign income for tourists, even if considered tax residents of PH, however, Seamans and OFW income abroad is not taxed. 

I think just don't get caught performing job duties in PH and insist that you do it only when you are abroad, but it would be nice to know if that's really how it works in practice.  I am afraid it can work like so many things here, it may vary depending on who you speak to. 

As I understand it, foreigners are not liable for income earned outside the Philippines regardless of their tax status in the Philippines.  Citizens however are taxed on global income.  Certain professions, such as OFWs, are specifically exempted from paying taxes here on money earned outside but that's a special provision.  

My main caution would be that the subject of foreigners earning money here is a hot topic with the BIR and as such it may be more difficult to fly under the radar than before.

[fillipino_wannabe]

You don't need to pay tax in the Philippines if the income is coming from abroad.
You're not supposed to work here on a tourist visa but realistically those rules were designed to stop foreigners taking local jobs, nobody is going to care if you're working on your laptop. There's not really any option to do it completely legally other than getting a marriage visa lol.

[Dave Hounddriver]

17 hours ago, JJReyes said:

I believe what you are asking is about Digital Nomads.  Unfortunately, this is rather new and there are no clear rules.

 

4 hours ago, fillipino_wannabe said:

There's not really any option to do it completely legally other than getting a marriage visa

That's what most people try to tell this OP.  Some good sense in those two quotes.  The OP seems to be one who does not understand terms like "grey area" or "stay under the radar"