Who Are Required to File Income Tax Returns in the Philippines?

0POSTS

7 years ago

I am seeking real / true answer from Gurus in Expat.com, please help, thank you in advance.

Here's my scenario: I am resident alien in PH (A13). Just start working for a website in my country - website designer / webmaster - 100% digital work. I have no source of income in PH.

I receive paycheck after PAYE / Tax deductions. I file tax returns (just did 2018) in my country in the Caribbean. No Double taxation treaty exists between my country and PH.

I receive foreign sourced income from my country in the Caribbean. Am I required to File Income Tax Return in PH?

Please allow me to share my research on the above question: I read on your website: https://www.bir.gov.ph/index.php/tax-in … e-tax.html

QUESTION: Who Are Required to File Income Tax Returns? ANSWER: Aliens, whether resident or not, receiving income from sources within the Philippines.

I am told contrary to the above answer. I am told because I live the PH therefore I am required to file. Something does not seem to be right. Please assist and help. Thank you.

The Davao expat guide

Comprehensive and free

Read it now

pej1111 Serial expat

562POSTS

5 years ago

Well written post, I not 100% sure of your question though, as you seemed to have answered it yourself

" QUESTION: Who Are Required to File Income Tax Returns? ANSWER: Aliens, whether resident or not, receiving income from sources within the Philippines."

You seemed to have done a lot of research on the topic already, picking up on one of the most important things that is not a common thing for most expats and that is the "Double taxation treaty" (For those interested: https://www.bir.gov.ph/index.php/intern … ments.html)

* You state that you are a Resident under a 13A visa, and that you are receiving income from a overseas source.
* As you are receiving a pay check, I make the assumption that you are an employee, employed as you stated from the Caribbean..
* I make the assumption that you are residing in the Philippines (?), (and not that you hold a 13A visa will living in the Caribbean.)

The link you provided is very handy and seems to cover any your topic question of "Who Are Required to File Income Tax Returns in the Philippines?"

Individuals

Resident citizens receiving income from sources within or outside the Philippines

1. Employees deriving purely compensation income from two or more employers, concurrently or successively at any time during the taxable year

2. Employees deriving purely compensation income regardless of the amount, whether from a single or several employers during the calendar year, the income tax of which has not been withheld correctly (i.e. tax due is not equal to the tax withheld) resulting to collectible or refundable return

3. Self-employed individuals receiving income from the conduct of trade or business and/or practice of profession

4. Individuals deriving mixed income, i.e., compensation income and income from the conduct of trade or business and/or practice of profession

5. Individuals deriving other non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax

6. Individuals receiving purely compensation income from a single employer, although the income of which has been correctly withheld, but whose spouse is not entitled to substituted filing

I look at the second point above and feel that you would need to lodge a tax return here in the Philippines. The Double Taxation Agreement not being applicable with the Caribbean is the trigger for my reason believing that you need to.