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Tax as a UK expat in Philippines

I am working for a foreign company in PH, we are a Branch Office of an EU company. I have been taxed at 32% of the whole of my income for the 2 months I have been here, but as I understand it the PH operates a progressive tax rate eventually rising to 32% but not on all of the income.

Can anyone advise on the true situation?

Hi!

if your income tax is 32% per month, then your annual income is more than PHP500,000.

Below is how the government computes it based on your annual income :
> 0 - 10,000 = 5%
> 10,000 - 30,000 = 10%
> 30,000 - 70,000 = 15%
> 70,000 - 140,000 = 20%
> 140,000 - 250,000 = 25%
> 250,000 - 500,000 = 30%
> 500,000 and above = 32%

so if your annual income is more than 500,000, then the tax computation is true.
mine is also 32%, i know.. it sucks.. especially seeing the country is not really developed. it always gives me a question, where does my money go?

In other countries I have worked i have at least been able to do tax deductible stuff like pensions, savings plans, life policies etc. but not here. It will definitely affect how long I stay here.

yes true. philippines is the highest deduction tax in south east Asia though..

amanda.O :

Hi!

if your income tax is 32% per month, then your annual income is more than PHP500,000.

Below is how the government computes it based on your annual income :
> 0 - 10,000 = 5%
> 10,000 - 30,000 = 10%
> 30,000 - 70,000 = 15%
> 70,000 - 140,000 = 20%
> 140,000 - 250,000 = 25%
> 250,000 - 500,000 = 30%
> 500,000 and above = 32%

so if your annual income is more than 500,000, then the tax computation is true.
mine is also 32%, i know.. it sucks.. especially seeing the country is not really developed. it always gives me a question, where does my money go?

500,000 pesos is only $10,000 USA, to be taxed at 32%?  Find another place to work.

I earn $13-15 per month depending on bonuses etc, not per year. Yes it is a decent salary but I do not want to make the sacrifice of working the other side of the world away from family and home to be taxed like this. The recruiter told me it was 32% top rate and suggested what my take home would be, higher than it actually is. I assumed that like anywhere else I have worked it was on an ascending sliding scale which was payable on the top portion of your salary, not all of it. I will raise this with my company and suggest we recalculate on a take home rather than gross basis. They are quite good on things like this talking to a couple of colleagues so I'll give it a go.

mugtech :
amanda.O :

Hi!

if your income tax is 32% per month, then your annual income is more than PHP500,000.

Below is how the government computes it based on your annual income :
> 0 - 10,000 = 5%
> 10,000 - 30,000 = 10%
> 30,000 - 70,000 = 15%
> 70,000 - 140,000 = 20%
> 140,000 - 250,000 = 25%
> 250,000 - 500,000 = 30%
> 500,000 and above = 32%

so if your annual income is more than 500,000, then the tax computation is true.
mine is also 32%, i know.. it sucks.. especially seeing the country is not really developed. it always gives me a question, where does my money go?

500,000 pesos is only $10,000 USA, to be taxed at 32%?  Find another place to work.

ikr, philippines has the highest income tax rate in south east asia but by looking at the country itself, how the infrastructure is.. i still can't understand why they take 32% of my salary every month.

Hello bangna63

There is a government website that gives you the info, plus info on reciprocal agreements with other countries (the UK)

https://www.bir.gov.ph/index.php/tax-in … e-tax.html 

All the best

Mervyn

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