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ACR, Tin, taxation, residency


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ilovelifehere

I arrived here in December 2010, I've got a sweet girlfriend here that I want to dedicate my time to, I intend to stay one year for this purpose. I am on a one year multiple entry 9a visa good for stays up to 59 days. I have today extended my visa and received a ACR-card so I am now ok to stay until April 2011 (at a cost of 7523 pesos). So far I have not exited the country since my arrival in December 2010.

 

While staying here I will not do any work, but I will receive some income from my old company to be on standby to flight back home and do some short time consultancy work if they suddenly need it, in any event my work abroad would be short time and I would return after a week or so.

For various reasons I would actually like to pay my taxes on that foreign sourced income here in the Philippines and I have been advised that this is in accordance with the double taxation treaty in place between the income country and the Philippines.

 

Now my question is: To ensure I am not taxable in the country where the money is sourced I understand I need go to the BIR office and apply for relief under the Double Taxation Treaty, has anybody here tried this before? and what documents are required?

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  • ilovelifehere

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Davaoeno

ummm- you are asking taxation advice re another country without telling us the name of the country ! My answer would be different if you told me you are from Nigeria than if you told me you are from Germany

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ilovelifehere

Ok I thought the process was the same no matter where the money is coming from as long as a double taxation treaty is in place. But to answer your question the money is being paid from a Danish company.

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Ok I thought the process was the same no matter where the money is coming from as long as a double taxation treaty is in place. But to answer your question the money is being paid from a Danish company.

 

 

http://untreaty.un.org/unts/120001_144071/28/9/00023677.pdf

the above might help you

Are you a danish citizen, do you have permanent home in Denmark

A 9a visa is a visitors/tourist visa, If you look at your ACR card it says temporary visitor

but read the above webpage

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Davaoeno

a few countries require that taxes be paid on your world wide income, regardless of where you earn it. Then of course for those countries the matter of residency comes in- and not all countries have the same test re residency. Then the matter of double taxation and tax treaties comes up. At least that is my understanding- I am not a tax lawyer.

I do have some knowledge of US and Canadian tax law- but not Danish tax law.

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a few countries require that taxes be paid on your world wide income, regardless of where you earn it. Then of course for those countries the matter of residency comes in- and not all countries have the same test re residency. Then the matter of double taxation and tax treaties comes up. At least that is my understanding- I am not a tax lawyer.

I do have some knowledge of US and Canadian tax law- but not Danish tax law.

 

So basically you know nothing on the matter and just wanted to hear your gums flap? LOLOL :biggrin_01:

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You're not allowed to work when you're here on a tourist visa - second, you still have to fill out the income on your

tax return ( selvangivelse ) in Denmark not matter in which country you receive or use the money - unless you move out

of Denmark permanently.

 

I would not suggest you go through the process - plus it would probably take 3-6 months any ways.

 

In case you feel morally obligated then I would say - you're probably already pumping good amount money into the economy

so that's enough until you decide to stay here permanently.

 

Held of lykke med det hele :biggrin_01:

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ilovelifehere

Lots of good feedback guys, but my question remains unanswered: Has any of you applied for relief under any Double Taxation Treaty (nevermind the country) with BIR?

 

mikej: it is not that simple, to ensure I am not going to get taxed in Denmark on the money I earn from denmark I need to show to the Danish taxman that I am a tax resident of the Philippines (note the distinction between tax resident and other forms of residency), therefore I need to apply for relief under the Double Taxation Treaty here in the Philippines.

 

Anyway I will probably just go to BIR and hear what they have to say, I just thought I would ask if anybody else has done this before venturing there myself.

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Davaoeno

Gee- i didnt know this was the DK !! Excuse me for trying to help someone ! Is it your position that because i am a real estate lawyer and not a tax lawyer that I know nothing about how tax law works ? I dont see you bringing anything to the table re the problem

a few countries require that taxes be paid on your world wide income, regardless of where you earn it. Then of course for those countries the matter of residency comes in- and not all countries have the same test re residency. Then the matter of double taxation and tax treaties comes up. At least that is my understanding- I am not a tax lawyer.

I do have some knowledge of US and Canadian tax law- but not Danish tax law.

 

So basically you know nothing on the matter and just wanted to hear your gums flap? LOLOL :biggrin_01:

Edited by davaolife
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Lots of good feedback guys, but my question remains unanswered: Has any of you applied for relief under any Double Taxation Treaty (nevermind the country) with BIR?

 

mikej: it is not that simple, to ensure I am not going to get taxed in Denmark on the money I earn from denmark I need to show to the Danish taxman that I am a tax resident of the Philippines (note the distinction between tax resident and other forms of residency), therefore I need to apply for relief under the Double Taxation Treaty here in the Philippines.

 

Anyway I will probably just go to BIR and hear what they have to say, I just thought I would ask if anybody else has done this before venturing there myself.

 

Do you even know how a double taxation treaty works? :). It's not for the purpose of saving in tax - the overall will be the same.

 

I doubt you'll even be able to pay your tax since you don't work here - you're just a tourist - second, I seriously doubt Denmark has a double taxation treaty with PH. Third, what's the purpose?. You'll just make everything twice as complicated.

 

Seems like an awful waste of time and resources - so if you wanna give back to the society, then team up with the danish guys at the Rise Above Foundation.

 

In case you don't listen to advise - good luck at the BIR, you'll need it :)

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Davaoeno

good advice mikej .

Lots of good feedback guys, but my question remains unanswered: Has any of you applied for relief under any Double Taxation Treaty (nevermind the country) with BIR?

 

mikej: it is not that simple, to ensure I am not going to get taxed in Denmark on the money I earn from denmark I need to show to the Danish taxman that I am a tax resident of the Philippines (note the distinction between tax resident and other forms of residency), therefore I need to apply for relief under the Double Taxation Treaty here in the Philippines.

 

Anyway I will probably just go to BIR and hear what they have to say, I just thought I would ask if anybody else has done this before venturing there myself.

 

Do you even know how a double taxation treaty works? :). It's not for the purpose of saving in tax - the overall will be the same.

 

I doubt you'll even be able to pay your tax since you don't work here - you're just a tourist - second, I seriously doubt Denmark has a double taxation treaty with PH. Third, what's the purpose?. You'll just make everything twice as complicated.

 

Seems like an awful waste of time and resources - so if you wanna give back to the society, then team up with the danish guys at the Rise Above Foundation.

 

In case you don't listen to advise - good luck at the BIR, you'll need it :)

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ilovelifehere

wow, it is a bit hostile here - of course I listen to advise, that is why I post here, I am just asking if anybody has any experience on the area of applying for double taxation relief, I thought it was a common thing to do for example for people living here on pensions from their home country.

 

I am doing this on advise by my tax advisor in PriceWaterhouseCoopers I trust they know how a double taxation treaty works. And yes Denmark has a double taxation treaty with the Philippines. And yes I am not allowed to work in the Philippines, and I don't! I get paid to be on standby and fly back if they need me to do some urgent work. I am here for a year, I will just stay on my 9a visa and keep extending it (my move away from Denmark is permanent) so thats why I become a tax resident in the Philippines eventhough I dont have a residency permit here. So the purpose of applying for Double Taxation relief is to be able to show to the Danish taxman that the Philippines consider me a tax resident this will allow me to pay my taxes here instead Denmark - I prefer to pay 33% tax here rather than 60%+ in Denmark.

 

Now I didn't mentioned Denmark in my original post because I didn't want this to be a narrow post only of interest to people earning money from Denmark, I just wanted people to share their experiences on Double Taxation Reliefs and like mentioned I thought it was a common thing here especially for people on pensions, maybe I am wrong.

 

I am sure BIR will be a bitch to handle, but thats life huh

 

If anybody has any experience with Double Taxation relief applications please let me know.

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Lots of good feedback guys, but my question remains unanswered: Has any of you applied for relief under any Double Taxation Treaty (nevermind the country) with BIR?

 

mikej: it is not that simple, to ensure I am not going to get taxed in Denmark on the money I earn from denmark I need to show to the Danish taxman that I am a tax resident of the Philippines (note the distinction between tax resident and other forms of residency), therefore I need to apply for relief under the Double Taxation Treaty here in the Philippines.

 

Anyway I will probably just go to BIR and hear what they have to say, I just thought I would ask if anybody else has done this before venturing there myself.

 

Do you even know how a double taxation treaty works? :). It's not for the purpose of saving in tax - the overall will be the same.

 

I doubt you'll even be able to pay your tax since you don't work here - you're just a tourist - second, I seriously doubt Denmark has a double taxation treaty with PH. Third, what's the purpose?. You'll just make everything twice as complicated.

 

Seems like an awful waste of time and resources - so if you wanna give back to the society, then team up with the danish guys at the Rise Above Foundation.

 

In case you don't listen to advise - good luck at the BIR, you'll need it :)

 

http://untreaty.un.o.../9/00023677.pdf please read my post number 4 this url IS the double taxation treaty between denmark and philippines

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wow, it is a bit hostile here - of course I listen to advise, that is why I post here, I am just asking if anybody has any experience on the area of applying for double taxation relief, I thought it was a common thing to do for example for people living here on pensions from their home country.

 

I am doing this on advise by my tax advisor in PriceWaterhouseCoopers I trust they know how a double taxation treaty works. And yes Denmark has a double taxation treaty with the Philippines. And yes I am not allowed to work in the Philippines, and I don't! I get paid to be on standby and fly back if they need me to do some urgent work. I am here for a year, I will just stay on my 9a visa and keep extending it (my move away from Denmark is permanent) so thats why I become a tax resident in the Philippines eventhough I dont have a residency permit here. So the purpose of applying for Double Taxation relief is to be able to show to the Danish taxman that the Philippines consider me a tax resident this will allow me to pay my taxes here instead Denmark - I prefer to pay 33% tax here rather than 60%+ in Denmark.

 

Now I didn't mentioned Denmark in my original post because I didn't want this to be a narrow post only of interest to people earning money from Denmark, I just wanted people to share their experiences on Double Taxation Reliefs and like mentioned I thought it was a common thing here especially for people on pensions, maybe I am wrong.

 

I am sure BIR will be a bitch to handle, but thats life huh

 

If anybody has any experience with Double Taxation relief applications please let me know.

 

that double taxation treaty is so you don't save on tax it's so you won't be taxed twice so if you pay 33 1/3% here you owe the danish goverment 26 2/3% if there tax is 60%

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ilovelifehere

that double taxation treaty is so you don't save on tax it's so you won't be taxed twice so if you pay 33 1/3% here you owe the danish goverment 26 2/3% if there tax is 60%

 

Yes amongst others double taxation treaties ensures tax payers doesn't pay double tax, however double taxation treaties can regulate much more than that. In my case the treaty just defines that I am taxable on my income in the Philippines - not Denmark, however if I cannot prove to the Danish tax authorities that I am in fact a tax resident or am paying taxes in the Philippines then Denmark will tax it instead.

 

So please lets get back to my question: does anybody have any experience with applying for Double Taxation Relief.

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