Jump to content

ACR, Tin, taxation, residency


Recommended Posts

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.

 

I guess that the answer is NO biggrin_01.gif

Link to post
Share on other sites
  • Replies 34
  • Created
  • Last Reply

Top Posters In This Topic

  • ilovelifehere

    8

  • Davaoeno

    5

  • Woolf

    5

  • David Spicer

    4

Stranded Shipscook

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.

 

Yes, but it is no relief !

 

But first you have to change your immigrant status to 9d or 9g*, otherwise you get no TIN number.

Without TIN number you can not file taxes.

Do that first and then go to the BIR to file for a TIN number.

The quarterly tax forms itself are quite simple to fill out, you could do it by yourself or ask a CPA to do it for you. as others said, you don't save any money.

In case you overpaid money here, the refund is pretty (almost impossible) hard to get.

 

 

* maybe you can ask the local Price Waterhouse Office to help you out there. asking costs nothing.

Link to post
Share on other sites
NittanyLion

I could PM (private message) you my accountant's email address. I don't think she would mind answering your question. But, you're new so I don't think you can receive/respond to PMs.

 

An alternative, if you can't receive PMs, is to go to ayosdito.ph and search for accountants. You can email a bunch of them your question. You could say that you're searching for an accountant, and you first need to know if they know enough to answer your question. I don't think that's a false statement, because if you do what you are saying (when you get here), it would be best to have an accountant (it's not expensive...if it's a local, especially one that is just doing it as a side job...if their main job is a practicing accountant for some company).

Link to post
Share on other sites

I've seen the document with the tax treaty - seems it's been made through the embassy which is no longer here, so who knows.

 

PriceWaterhouseCoopers is also present here, they've got an office in Manila - so you could contact them and make them setup everything

with the Danish department.

 

I think you should do a little more research from the danish side before you contact the authorities here, first step would be take make sure

you're really tax exempt in Denmark. No house - or condo in Denmark, unless you've rented it to someone for at least two years - and your address has

to be registered abroad. Do you receive your payments in Denmark - or in The Philippines?. Since that's another issues.

 

Also - foreign income here is categorized different so it might not even be taxable income.

Link to post
Share on other sites
David Spicer

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.

As already stated, you are not a resident of the Philippines in any shape, form, or fashion. You have a Temporary Vistors Visa, which means you are a visiting tourist. How is it that the Philippines is taxing your Danish income?

Link to post
Share on other sites
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.

As already stated, you are not a resident of the Philippines in any shape, form, or fashion. You have a Temporary Vistors Visa, which means you are a visiting tourist. How is it that the Philippines is taxing your Danish income?

 

Even if I dont have a residency permit, if I stay in this country more than 183 days in a year according to the double taxation treaty my income in taxable in the Philippines.

Link to post
Share on other sites
David Spicer

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.

As already stated, you are not a resident of the Philippines in any shape, form, or fashion. You have a Temporary Vistors Visa, which means you are a visiting tourist. How is it that the Philippines is taxing your Danish income?

 

Even if I dont have a residency permit, if I stay in this country more than 183 days in a year according to the double taxation treaty my income in taxable in the Philippines.

You did not answer the question. If you have income originating in the Philippines, and you are a tourist, you have bigger possible problems to worry about than being taxed by Denmark.

 

I am a permanent resident and have been living here for 4 years as of today. I do not work here and have no income originating here. With the exception of VAT when I purchase something, which we all pay, I pay no taxes here. I don't know about Denmark, but I am however still obligated to pay any taxes due to the USA.

Link to post
Share on other sites
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.

As already stated, you are not a resident of the Philippines in any shape, form, or fashion. You have a Temporary Vistors Visa, which means you are a visiting tourist. How is it that the Philippines is taxing your Danish income?

 

Even if I dont have a residency permit, if I stay in this country more than 183 days in a year according to the double taxation treaty my income in taxable in the Philippines.

You did not answer the question. If you have income originating in the Philippines, and you are a tourist, you have bigger possible problems to worry about than being taxed by Denmark.

 

I am a permanent resident and have been living here for 4 years as of today. I do not work here and have no income originating here. With the exception of VAT when I purchase something, which we all pay, I pay no taxes here. I don't know about Denmark, but I am however still obligated to pay any taxes due to the USA.

 

Thanks for your warning David. I do not have income originating in the Philippines and I do not work while I am here. As I explained in an earlier post I am getting paid a monthly fee to stand-by and if needed fly out and help on various projects abroad, and I have been advised that the double taxation treaty dictates that this monthly stand-by sum (which is paid into my filipino euro account from a foreign company) is supposed to be taxed in the Philippines as a consequence of me staying here more than 183 days in a year.

I have no intention of breaking any laws, that's why I am trying to set everything up so I wont get into trouble. But it seems I will have a hard time convincing BIR they are due tax from me :cheers:

Edited by ilovelifehere
Link to post
Share on other sites

Fly to hongkong for a day and setup an account - can be done in 30 mins. Problem solved :bashtroll:

Link to post
Share on other sites

I do not have income originating in the Philippines and I do not work while I am here.

 

As I explained in an earlier post I am getting paid a monthly fee to stand-by and if needed fly out and help on various projects abroad,

 

1. Your going to be visiting the Philippines on a tourist visa

 

2. You are not going to be working here in the Philippines ... No income you get will be derived directly from Filipino sources.

 

Why in God's name would you as a foreigner (not employed in the Philippines) ever want to go to the BIR and try to get a TIN? You have no reason at all to involve yourself with the Filipino BIR.

 

 

Pay your taxes in your home country like you should, and forget about the BIR here in the Philippines. You are just a foreign tourist while visiting here, and have no tax obligation to the Philippines for money that you make outside the Philippines.

 

Enjoy your extended vacation :)

Link to post
Share on other sites

I can see why ILOVEITHERE tries to avoid the danish income tax, if you do not turn in your "forskuds angivelse" (like pre tax return) and your "selvangivelse" (like tax return", the employer will have to deduct flat 60% off your salery for income tax, now that is a lot to lose and no benefits when not living in the country.

The only way out of it, that I can see, is to have  a company and then write the "employer" an invoice

Edited by Woolf
Link to post
Share on other sites
SkyMan

I'm not sure you can do this but chck with the BIR. You're on 9a so you can't work. I would wonder how you can be taxed here on income if you can't work here. Let us know if the BIR does this though and you avoid your home country taxes this way.

 

Are you sure you want to do this though? It doesn't take a lot of income to get into the high tax rate of 32%. Just $10K

Link to post
Share on other sites

I'm not sure you can do this but chck with the BIR. You're on 9a so you can't work. I would wonder how you can be taxed here on income if you can't work here. Let us know if the BIR does this though and you avoid your home country taxes this way.

 

Are you sure you want to do this though? It doesn't take a lot of income to get into the high tax rate of 32%. Just $10K

 

Just if you do not know 32% is LOWER than 60% stick_poke.gif

Link to post
Share on other sites
Davaoeno

When i was in a similar situation i just had the money credited to my corporate account in the Carribean

 

I'm not sure you can do this but chck with the BIR. You're on 9a so you can't work. I would wonder how you can be taxed here on income if you can't work here. Let us know if the BIR does this though and you avoid your home country taxes this way.

 

Are you sure you want to do this though? It doesn't take a lot of income to get into the high tax rate of 32%. Just $10K

 

Just if you do not know 32% is LOWER than 60% stick_poke.gif

Link to post
Share on other sites
Guest
This topic is now closed to further replies.

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use, Privacy Policy and Guidelines. We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue..

Capture.JPG

I Understand...