Moving to Philippines and Freelance contractor

[Jollygoodfellow]

57 minutes ago, TomG77 said:

I was going to enter only on a 30 day visa, get an extension for 60 days then apply for a 12-36mth visa. I believe they have brought this in after liftingteh retirement visa to 50yrs old. 

You won't get a 60-day extension on the first extension.  A retirement visa is nothing to do with tourist. Its called an "SRRV"  and you should look it up. I won't bother giving a link here as you have been doing some research so should know.

Secondly, since you are becoming a contractor for an Australian company you will need to register your business in Australia and pay tax. Im sure the company you will now be a contractor for will want to see they are dealing with a legitimate business rather than some offshore freelancer that used to work for them.

 

[hk blues]

15 hours ago, Joey G said:

So the company you work for now,  and going to contract with is washing their hands of you as an employee... as in... they aren't going to care where you work and want nothing to do with the legal and tax implications. Yes, you told them you're planning to go the Philippines, but I'll bet your contract says nothing about the country you will work in. I would contact a lawyer versed in foreign work abroad and get your advice there.  

For sure a tourist visa won't legally allow you to work in the Philippines. In fact few if any countries allow tourists to work on a strictly tourist visa. 

I'd be cautious about doing anything that potentially upsets the 'employer' - it sounds to me like they are doing the OP a favour and as such why would they/should they deal with any of the logistics of making it happen?  

[Joey G]

11 hours ago, hk blues said:

On 9/26/2023 at 7:48 AM, Joey G said:

So the company you work for now,  and going to contract with is washing their hands of you as an employee... as in... they aren't going to care where you work and want nothing to do with the legal and tax implications. Yes, you told them you're planning to go the Philippines, but I'll bet your contract says nothing about the country you will work in. I would contact a lawyer versed in foreign work abroad and get your advice there.  

For sure a tourist visa won't legally allow you to work in the Philippines. In fact few if any countries allow tourists to work on a strictly tourist visa. 

I'd be cautious about doing anything that potentially upsets the 'employer' - it sounds to me like they are doing the OP a favour and as such why would they/should they deal with any of the logistics of making it happen?  

Um.... OK... but where in my post is there anything that would upset the "employer".... surely "contact a lawyer versed in foreign work abroad and get your advice there." shouldn't upset anyone    

[hk blues]

13 hours ago, Joey G said:

Um.... OK... but where in my post is there anything that would upset the "employer".... surely "contact a lawyer versed in foreign work abroad and get your advice there." shouldn't upset anyone    

It was more the wording such as  'is washing their hands of you as an employee' and 'want nothing to do with the legal and tax implications' that made pushed me in the direction of thinking you were suggesting a more confrontational approach through a lawyer. 

[Tommy T.]

An SRRV visa is a good (but a bit expensive) way to be able to stay as long as you want in the Philippines and come and go as you please. There are some topics on this forum that can give you good information about this. Much less hassle - in my opinion - than a tourist visa, and more versatile. If an issue came up regarding working here in the Philippines well, the SRRV permits foreigners to work here. It is a bit of a hassle to get one but not really that difficult.

[longway]

On 9/28/2023 at 8:17 PM, Tommy T. said:

 It is a bit of a hassle to get one but not really that difficult.

Many are doing it. I spoke to the PRA (PHilippine Retirement Authority) Office in Cebu and was told they are processing about 10 per month.

[Boinky69]

On 9/27/2023 at 8:37 AM, TomG77 said:

Thanks everyone for your advice and input its much appreciated.

I am confirming from the Australian office the following which I believe is true

So as a non-resident, do I need to lodge a tax return or a ‘return not necessary’ form?

Whether you need to complete an Australian tax return or lodge a ‘return not necessary’ form will depend on the type of income (if any) that you earn from Australian sources. Generally speaking, you will only be taxed on your Australian-sourced income and will only need to complete a tax return if you earn the following types of income:

• Income from Australian employment (where those activities are carried out in Australia)

 When in the Philippines I will be working from home on a laptop only. I am not associated with any business in the Philippines or speaking with any local businesses. All my work relates back to the Australia construction industry. 

 

I will look into this comment from JJReyes......Technically you are not working in the Philippines.  It sounds similar to being a Digital Nomad.  Some countries are openly promoting the concept because this is the equivalent of having a 365-day tourist.  Money is spent in-country and the source for the money is offshore.  No loss of job to nationals which is the reason for the strict labor laws.  Check if the Philippines has or will offer this type of visa.

 

To be clear I am open to paying tax to the Philippines Government if I am required to, but If I don't then that is even better. 

I was going to enter only on a 30 day visa, get an extension for 60 days then apply for a 12-36mth visa. I believe they have brought this in after liftingteh retirement visa to 50yrs old. 

Hi Tom, Did you end up working remote and sort out the tax position re Australia? I'm curious as I will face something similar soon..

 

[Boinky69]

I am certain that Australia taxes any Taxation Resident on worldwide Income but does consider any Taxation Treaty that may exist with reciprocal countries. If you leave the Australia Taxation system and become a "non-resident for taxation" (which may be simple or complex depending on your personal situation) any income earned overseas while living / residing in PI would be Tax free. The question is what documentation (Invoice) would your Aust. company require to validate payment. If they want a formal legitimate Invoice from a PI entity then you may have a problem. You would need to set up potentially a OPC in the PI which is then subject to tax.. If they are open to accepting some dodgy self made Invoice then your gold!!