It’s Your Money > Taxes

Tax in PI

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Foreigner:
Can anyone tell what the arrangements are concerning paying tax in PI?  Do you need to lodge a return each financial year?

I\'ve been told that if move to another country I\'m not obliged to pay tax in Oz on my super payments received from there if I reside overseas for a period longer than 6 months.  However, I am obliged to pay tax on income received to the country I reside. 

Is anyone else in a similar situation and does anyone else pay tax in PI? Is there a flat rate in PI?

Any advice would be welcome.

Thanks

graham:
Hi Foreigner,

I\'m sure someone will correct me if I\'m wrong, but as far as I am aware, you do NOT pay tax in the Philippines unless you are earning money here. I have Super and the Pension. I don\'t pay tax.  Maybe Colin can chime in here as he is more experienced with hassling the Bureaucrats here than I am???

Graham

Lee2:
My understanding is that no tax is paid on income made outside the country, but we all do pay VAT (value added tax) on most things we buy, so they get us all and everyone else who does not have to file taxes anyway. They also withold some of any interest we make in most Philippine banks, so they get us that way too but that is income earned in the country so they have a right to that IMO.

As others have said, it is probably best to check your own situation out with a tax lawyer or accountant in the Philippines to be sure if you have income other than pension etc.

GregW:
As a general rule, income derived from an RP source is taxed in the RP.  Income derived from a foreign source is not taxed in the RP but is probably taxed in the source country.

Foreigner:
Thanks to everyone for their responses.

I\'ve just been informed by my tax consultant that I would be required to pay tax here in Oz on any super payments before being credited into my bank account, although it would be minimal.

He also said that it would be highly unlikely that I would be required to also pay tax in PI.

Cheers

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