Author Topic: Tax in PI  (Read 7595 times)

Offline BingColin

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Re: Tax in PI
« Reply #15 on: June 03, 2014, 08:49:56 PM »

I was in conversation with an Australian who worked mostly in Europe and a British ex-pat, both retired and living in the Philippines as residents, but not citizens.  They were not paying tax on Europe/UK based pensions in Europe/UK as they were not resident there.  As a resident, but not citizen in the Philippines, they would not pay tax there either according the the above reference.

Is this too good to be true?  Any British in the Philippines able to confirm this?  Would make a huge difference to the timing of our plans not to lose some 30-40% in tax on UK pensions.  If anyone has details of a residency/taxation expert with knowledge of UK/Philippines regulations, please send a link.


I don't have a link, but just google 'Double taxation between the Philippines and UK', or something similar  :)

The agreement covers a range of things, but for pensions, you cannot avoid paying tax on the government pension, but you can elect to pay tax to the Philippines on private pensions. The advantage is that the Philippines does not tax pensions. This is a not a fiddle but a loophole in the system. You need to go to the department of foreign affairs in Manila to fill in a form, they will send it to the tax people in the UK who will then give you a zero rating on your private pension.

Offline drpeterb

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Re: Tax in PI
« Reply #16 on: June 03, 2014, 11:45:52 PM »

I don't have a link, but just google 'Double taxation between the Philippines and UK', or something similar  :)

The agreement covers a range of things, but for pensions, you cannot avoid paying tax on the government pension, but you can elect to pay tax to the Philippines on private pensions. The advantage is that the Philippines does not tax pensions. This is a not a fiddle but a loophole in the system. You need to go to the department of foreign affairs in Manila to fill in a form, they will send it to the tax people in the UK who will then give you a zero rating on your private pension.

Hi Colin

Thank you for the UK perspective and apologies to those with US origins/links the lack of relevance to the US.  I had looked at the double taxation issue before and agree that under that agreement, you pay appropriate tax only once. 

It seems strange that the UK can differentiate a private pension from a state one with respect to taxation within the UK.  I am not sure where the NHS superannuation pension would fit into that.  Certainly seems worth investigating in full with a professional in that area!

Thanks again for all the comments.  Much appreciated.  Maybe see you in 2 years not 4.5.......  At least I will be visiting in August.  Cannot come soon enough especially as family will be there full-time in the next few weeks.

Peter
« Last Edit: June 04, 2014, 03:32:51 AM by Gray Wolf »

 


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