Living in the Philippines from outside earnings?

[buddy]

Dear All,

I present i have a small business that provides products manufactured and supplied from the UK to businesses in the Asia-Pacific region.

However i intend to move to the Philippines next year and i will need to have a business name and a Philippine bank account to transfer payments with existing customers but no business activity will actually take place in the Philippines....i am basically just taking orders via email and box shifting. 

I am exploring possibilities of which is the best way forward without forming a Philippine limited company, having an office etc because they wont be needed.

FYI, I am a 58 year old UK citizen currently residing in Thailand.

Can anybody please advise?

best regards and i hope to hear from you soon.

[Gray Wolf]

Hi Buddy, welcome to the group.

We will need more precise details in order to give you the perfect answer, but what you propose to do is very similar to what I presently do, in general terms. The key for you will be where your company is based.

Since I've been running my privately owned company I've continued to conduct business while I'm visiting the Philippines. Some exceptions between your business and mine may be that I have no customers in the PH and ship nothing. I do not live in the PH full time (yet), nothing is shipped since all of my business is basically software that I create (graphic arts business).

My company is a sole proprietorship, non-corporate with banking done in the US, as well as a PayPal account. All of my orders are taken online, work completed and sent online, including invoicing. My customers receive the software and the invoice electronically and pay via PayPal. You can do the same thing using Square. I then simply transfer money to my bank account electronically. I can then make ATM W/D's worldwide or transfer cash via Xoom using my bank account.

Nothing is based in the PH, so I don't have to create a company in the PH, nor pay PH taxes, since I'm already taxed (to death) by the US.

Your mileage may vary, depending on how your company operates. Give us more detail.

Good luck and watch out for the Crocodiles! 

[buddy]

Hi Gray Wolf,

Thank you for replying to my topic.

What you have is what i am trying to avoid, the UK government have had enough of my taxes over the years and i don't wish to register as a sole trader in the UK.

What is required as a British citizen to open just a bank account in the Philippines...maybe that is an option i don't know?

[starrt]

Hi Buddy,

There is a concept called "Worldwide Income". The taxes are paid on that depending on where you are deemed to be resident. If the business is run in the UK you will need to look up the tax treaty between the UK and the Philippines to see what is considered Worldwide Income and what is considered resident or non resident.

As an example, and each case is different according to local and international laws, in my case, I am deemed non resident in Canada, where my employment income is earned, and resident in the Philippines. My salary received in Canada, for online work in Canada, is given to me gross, no deductions at source, and is taxed here in the Philippines. I have to file an income tax return here and pay the BIR income taxes on my salary.

Again, each case is different and you need to explore more the laws and treaties pertaining to your situation.

Good luck and let us know what you find out.

Thomas