Living in The Philippines > RA 9225, Citizenship Retention and Re-acquisition
Tax Implications for dual national retiring in the Philippines
Minibrings:
--- Quote from: Art, just a re(tired) Fil-Am on April 20, 2017, 08:12:51 AM ---I believe that double taxation laws for dual citizens pertains to which country the income came from, hence no double taxation if residing in the Philippines and not earning income in the Philippines.
To answer your and my own question, found my own answer (see link)
http://tinyurl.com/mte3j26
As to taxes to be paid, he shall be subject to the rules of income tax under Section 23 of the National Internal Revenue Code (NIRC) which provides that “except when otherwise provided in this Code (NIRC): (a) a citizen of the Philippines residing therein is taxable on all income derived from sources within and without the Philippines; (b) a nonresident citizen is taxable only on income derived from sources within the Philippines; xxx. Accordingly, the Philippine government shall only tax you if you have income in the Philippines. Income under the NIRC means all income derived from whatever source. However, you don’t have to worry about the pension you are receiving from the US government being a veteran because this pension is expressly exempted by the NIRC from taxation. It is stated under Section 32 (B)(6) of the NIRC that “the following items shall not be included in gross income and shall be exempt from taxation under this title: Xxx (d) payments of benefits due or to become due to any person residing in the Philippines under the laws of the United States administered by the United States Veterans Administration”.
It also pertains to me, a U.S. citizen (not a dual citizen) with pensions from the U.S., are also tax exempted by the Philippine government, but only taxed by the U.S. government.
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See a) sources within and without (which translates to outside country).. but pensions are exclusively red but duvidends and interest income earned in the US I have to research
Art, just a re(tired) Fil-Am:
--- Quote from: Minibrings on April 20, 2017, 05:43:59 AM ---Does the Philippines tax retirement income earned in the US (pension, SSN, interest/dividend income) once the dual national is living in country?
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Simple answer, NO. Accordingly, the Philippine government shall only tax you if you have income in the Philippines. Income under the NIRC means all income derived from whatever source. However, you don’t have to worry about the pension you are receiving from the US government being a veteran because this pension is expressly exempted by the NIRC from taxation. It is stated under Section 32 (B)(6) of the NIRC that “the following items shall not be included in gross income and shall be exempt from taxation under this title:(d) payments of benefits due or to become due to any person residing in the Philippines under the laws of the United States administered by the United States Veterans Administration”.
bigrod:
Military retirement pay and SBP are paid by the Department of Defense and SS is paid by the Social Security Administration. So they are NOT administered by the US Veterans Administration.
Chuck
Art, just a re(tired) Fil-Am:
--- Quote from: bigrod on April 21, 2017, 08:58:33 AM ---Military retirement pay and SBP are paid by the Department of Defense and SS is paid by the Social Security Administration. So they are NOT administered by the US Veterans Administration.
Chuck
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it was stated, or to become due to any person residing in the Philippines under the laws of the United States administered by the United States Veterans Administration”.
IMHO, the bottom line that U.S. pensions or any form of income from the U.S. are exempt from double taxation when in the Philippines. That's all I'm saying.
bigrod:
--- Quote from: Art, just a re(tired) Fil-Am on April 21, 2017, 10:30:19 AM ---it was stated, or to become due to any person residing in the Philippines under the laws of the United States administered by the United States Veterans Administration”.
IMHO, the bottom line that U.S. pensions or any form of income from the U.S. are exempt from double taxation when in the Philippines. That's all I'm saying.
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While I agree with what you are saying, the following is from taxesforexpats.com.
TAXABLE INCOME
RESIDENT CITIZENS
Resident citizens of the Philippines are taxed on all their net income derived from sources within and without the Philippines.
ALIEN INDIVIDUALS
An alien individual, whether a resident or not of the Philippines, is taxable only on income derived from sources within the Philippines. Resident aliens are taxed in the same manner as resident citizens on income sourced within the Philippines.
Chuck
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