Jump to content

TAX! Do you pay any to RP?


Recommended Posts

  • Replies 45
  • Created
  • Last Reply

Top Posters In This Topic

  • poby

    8

  • MattFromGA

    6

  • ckfm

    5

  • JohninCebu

    4

My income is from the States and Sri Lanka. Don't think I'm liable. s*** am I? B) :welcome:

 

The income from Sri Lanka may still be elig to be exempt.. I know the first year I was on the contract, I had income from the States, that was all I paid tax on...The income from the contract job in PI was exempt.

I would check however as that was 20 years ago, and the laws may have changed a number of times since then.

Jim

Link to post
Share on other sites
  • 3 weeks later...
My income is from the States and Sri Lanka. Don't think I'm liable. s*** am I? :rolleyes::)

 

 

So you are working in the Philippines and not declaring any taxes from your income? Kind of shaky road your are on. Hope you know what you are doing.

 

:D

Link to post
Share on other sites
MattFromGA

scianna54, are you saying that if Steven King came here for the summer and wrote a best selling novel while here, he would have to pay Philippine taxes on that income?

Link to post
Share on other sites
scianna54, are you saying that if Steven King came here for the summer and wrote a best selling novel while here, he would have to pay Philippine taxes on that income?

 

 

If he would write his whole novel here, I would say yes. It takes quite a while to write a novel, nothing you can do during vacation, it wouldn't be vacation then anyway, right?

 

But clear, if you do currency trading and online business as Mr. Akshay Vaswani has mentioned, he has to pay taxes in the Philippines. No doubt about that.

 

:rolleyes:

.

Link to post
Share on other sites
MattFromGA

So, If while on vacation, a currency trader were to make a profit while here in the Philippines they would be liable for taxes on their profits? How about someone retired here? If they have an IRA in the states still earning interest, will they have to pay taxes in the Philippines? Let me ask you, did you or do you work for the IRS?

Link to post
Share on other sites
MattFromGA

How about this.. Steven king writes the novel while here in the Philippines, BUT, uses a server in the US with remote desktop so the actual writing is stored done on a machine in the US? Lets say while Steven is traveling, he visits Thialand and Hong Kong. I guess he would have to file income taxes in Thiland, Hong Kong, Philippines and the USA? hmmmm.... doesnt sound right to me.

Link to post
Share on other sites
How about this.. Steven king writes the novel while here in the Philippines, BUT, uses a server in the US with remote desktop so the actual writing is stored done on a machine in the US? Lets say while Steven is traveling, he visits Thialand and Hong Kong. I guess he would have to file income taxes in Thiland, Hong Kong, Philippines and the USA? hmmmm.... doesnt sound right to me.

 

There is a lot of fiction involved in your assumption. Where the data is stored has nothing to do with where the money is earned.

 

I am sure that Steven King would have to consult a tax expert in order to figure that one out.

 

I was only referring to the more easier example. Retirement income is also a whole other issue.

 

.

Edited by scianna54
Link to post
Share on other sites
MattFromGA

In fact there are several members of this board that are in a very similar situation with software development. They consult with a company in a different country, but "live" here in the Philippines. The income is taxed in the persons "home country".

 

This issue is very similar to how it works in the USA when going from one State to another. If I live in Florida, but am sent to N. Carolina for 2 months to help a client on site I am not subject to N. Carolina taxes. I know this from many years of working in the consulting business and having many accountants over time.

 

Baseball players and other sportsman DO have to pay taxes while playing a game in a different state than they live. However, I've literally met thousands of consultants and discussed this very issue with all of them and NOT ONE of them has ever paid income taxes in a different state than they resided in.

 

The IRS loves to bust big companies using consultants rather than employees and have setup big rules for what a consultant is rather than an employee. IBM has had tens of thousands of consultants get changed to employees by the IRS and they had to pay back taxes for them. The IRS even gives tax free perdiums to employees going "out of town" on business. Never has the issue of cross state taxation come up out of those types of short term work assignments.

 

In the end, I disagree with scianna54 on his tax evaluation. Writers and artists dont have to pay income tax on works they create while they travel around the world. Can you imagine? A guy goes to Paris to paint a picture. He brings it back to the states and sells it for a million dollars. He's gonna pay taxes to France? I dont think so.

Edited by MattFromGA
Link to post
Share on other sites
In fact there are several members of this board that are in a very similar situation with software development. They consult with a company in a different country, but "live" here in the Philippines. The income is taxed in the persons "home country".

 

This doesn't confirm with RP law for sure.

 

 

This issue is very similar to how it works in the USA when going from one State to another. If I live in Florida, but am sent to N. Carolina for 2 months to help a client on site I am not subject to N. Carolina taxes. I know this from many years of working in the consulting business and having many accountants over time.

 

That's US law

 

Baseball players and other sportsman DO have to pay taxes while playing a game in a different state than they live. However, I've literally met thousands of consultants and discussed this very issue with all of them and NOT ONE of them has ever paid income taxes in a different state than they resided in.

 

Not true, I know of several case were golf and tennis players have to pay taxes in that country. The organizers withhold the taxes, so the players don't have to deal with it.

The IRS loves to bust big companies using consultants rather than employees and have setup big rules for what a consultant is rather than an employee. IBM has had tens of thousands of consultants get changed to employees by the IRS and they had to pay back taxes for them. The IRS even gives tax free perdiums to employees going "out of town" on business. Never has the issue of cross state taxation come up out of those types of short term work assignments.

 

again, this is US law

In the end, I disagree with scianna54 on his tax evaluation. Writers and artists dont have to pay income tax on works they create while they travel around the world. Can you imagine? A guy goes to Paris to paint a picture. He brings it back to the states and sells it for a million dollars. He's gonna pay taxes to France? I dont think so.

 

IF Steven King lives in the Philippines, he has to pay taxes here.

Link to post
Share on other sites
MattFromGA
Secondly, the Philippines has dual taxation agreements with most countries, and if you pay tax in RP, that is PROOF to your home countries tax people that you really are living elsewhere.

My guess is the stamps in your passport are better proof you actually lived there. Otherwise, would it be ok to file taxes in the Cayman Islands while living here in Cebu and earning income from the USA?

Link to post
Share on other sites
MattFromGA

scianna54, you really are the poster child of the IRS. :rolleyes:

Joke Joke - please dont have the police beat me up.

Link to post
Share on other sites
scianna54, you really are the poster child of the IRS. :rolleyes:

Joke Joke - please dont have the police beat me up.

 

Matt, I hope you know why I replied to this post today. The problem with the police is that they can easily get ahead of themselves and do more than you "ask" for. You disagree with me a lot, that's fine with me, shake hands with my wife.

 

:)

 

.

Link to post
Share on other sites
  • 1 month later...

http://www.bir.gov.ph/taxcode/1560.htm

 

CHAPTER II - GENERAL PRINCIPLES

SEC. 23. General Principles of Income Taxation in the Philippines. - Except when otherwise provided in this Code:

 

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;

 

C. An individual citizen of the Philippines who is working and deriving income from abroad as an overseas contract worker is taxable only on income derived from sources within the Philippines: Provided, That a seaman who is a citizen of the Philippines and who receives compensation for services rendered abroad as a member of the complement of a vessel engaged exclusively in international trade shall be treated as an overseas contract worker;

 

D. An alien individual, whether a resident or not of the Philippines, is taxable only on income derived from sources within the Philippines;

 

E. A domestic corporation is taxable on all income derived from sources within and without the Philippines; and

 

F. A foreign corporation, whether engaged or not in trade or business in the Philippines, is taxable only on income derived from sources within the Philippines.

Edited by M.Morey
Link to post
Share on other sites
  • 3 months later...
J and Sheila
http://www.bir.gov.ph/taxcode/1560.htm

 

CHAPTER II - GENERAL PRINCIPLES

SEC. 23. General Principles of Income Taxation in the Philippines. - Except when otherwise provided in this Code:

 

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;

 

C. An individual citizen of the Philippines who is working and deriving income from abroad as an overseas contract worker is taxable only on income derived from sources within the Philippines: Provided, That a seaman who is a citizen of the Philippines and who receives compensation for services rendered abroad as a member of the complement of a vessel engaged exclusively in international trade shall be treated as an overseas contract worker;

 

D. An alien individual, whether a resident or not of the Philippines, is taxable only on income derived from sources within the Philippines;

 

E. A domestic corporation is taxable on all income derived from sources within and without the Philippines; and

 

F. A foreign corporation, whether engaged or not in trade or business in the Philippines, is taxable only on income derived from sources within the Philippines.

 

 

>>>>>That sums it up nicely! Thanks Morey!

 

J

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...