Income tax in the Philippines?

Unfortunately, I know nothing about the tax system in the Phliippines, but it's entirely possible that the Philippines taxes only income earned locally. Not all countries insist on residents declaring and paying taxes on their worldwide income (like the US and France, for instance).

I'm going to change the header on this thread to see if we can find someone who knows about taxation in the Philippines.
Cheers,
Bev

Thanks Bev.

I have asked around among people I know who live there again and they say this is true, outside income is not taxed.

This would mean great news for me if I decide to move there.

Tom688 said:

Hi.
I have a weird question, I have a few friends who moved to the Philippines (I want to do so myself) and they both claim they pay zero taxes over there.

One has a temporary visa (renewing it by flying out of country now and then) and the other has a permanent residence visa from marrying.

They both get their income from outside the county (online income) from companies situated in another country then Philippines. Thus they live in P, have companies based abroad, get money online and dont have any form of pensions having cut all ties with their countries of origin BUT still have dual citizenships.

They both claim this allows them to get away with zero Philippine tax.

My question is thus, is this even possible?

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I am originally from the U.S.A. now living in the Philippines. I get a visa extension every 60 days but required to leave every 2 years for 1 calendar day. My income comes from the USA. I do pay taxes in the USA but no income tax on that money in the Philippines. U.S.A. pensions are NOT taxable in the Philippines.
I do not have dual citizen. Having a permeate visa (requiring $10,000 in a Philippine bank) or a visa from marriage does not make one a Philippine citizen.

Phil_expat said:

I am originally from the U.S.A. now living in the Philippines. I get a visa extension every 60 days but required to leave every 2 years for 1 calendar day. My income comes from the USA. I do pay taxes in the USA but no income tax on that money in the Philippines. U.S.A. pensions are NOT taxable in the Philippines.
I do not have dual citizen. Having a permeate visa (requiring $10,000 in a Philippine bank) or a visa from marriage does not make one a Philippine citizen.

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I believe if you are living outside the US for 330+ days a year (ex. Philippines) and your source of income is from the US, then you can exclude up to $120,000 from US Federal Taxes (2023). This is known as the Foreign Earned Income Exclusion. Others please chime in if this is correct or not, as I'm planning on doing it but haven't yet.

Not quite - if you are living outside the US, the FEIE is only available for earned income (i.e. salary or wages) while resident outside the US. There is no FEIE on US sourced income. There are also some "details" regarding the 330+ days a year to qualify for the FEIE.

Which country gets to tax US pension income depends on the tax treaty between your country of residence and the US. Usually if you're talking about US Social Security or something like an IRA, 401K, etc., it's the US that claims first "dibs" on taxing that income (though there are exceptions - such as UK, Germany and Italy under certain circumstances). You should also check where you fall under the Philippines law as far as being considered "tax resident" in the Philippines or not.