mikemike

SRRV, contact the PRA with your query re services qualifications.

I gave up the SRRV for a 13a as I did not want my deposit to fall under Philippines death duties laws. By the time that attorneys, banks and BIR had taken their cut, no doubt contrived over many years to makes sure they got the lot. Instead my deposit in Her account in the UK so does not fall under UK IHT.

annual fee for 13a is 310 pesos Initial set up fees over the first two years is close to 17000

If I had my time again it would have been transfer to Balikbayan

Gazza-d

I think the main difference between the 13a and SRRV is that the SRRV stands alone whereas the 13a relies on you spouse. You are likely to lose your 13a if you split from your spouse.

The Flying Welshman

Hi folks, I am new to this forum and joined specifically because of this thread.

I am 64 and single, no children. I currently receive a Local Government pension which is classified as a "Government" pension according to note 3 at the HMRC International Manual It's above the $1000 a month required for the SRRV visa, just under the UK personal allowance tax threshold, so I don't pay tax. However, in 2021, I will get my full state pension, which will take me over the personal allowance tax threshold. So in the UK, I will start to pay tax after this date.

I plan to move to the Philippines "permanently" around April 2020 (though I may end up in another South East Asian country at some point, who knows). From reading the posts here, I think I am correct to assume that even with an SRRV Visa, I can't avoid paying tax to the UK because both pensions are "Government". Do others agree?

As I see it, therefore, I won't get any financial advantage with an SRRV Visa other than freedom of movement and other benefits. Do others agree with that?

I wondered if a Philippines bank account is an advantage. I suppose it's possible to open a bank account with an SRRV, but I could give that up to get a refund on the $10K deposit at a later date, and retain the bank account. Just a thought anyway.

Any helpful comments would be appreciated.

Thanks, TFW

RedApe

How the UK taxes your UK pension (or other UK income) is up to the UK...not the nation you immigrate to. Plus they've got you by the bollocks since the pension derives from the British Treasury.

Some nations are both residency and nationality-based tax systems. That's where there is a risk of being "double-taxed".

Unless there is a Tax Treaty between the two nations regarding the pension then there will be UK tax on the UK derived pension. In some cases the other nation may tax the pension and then the UK may waive the UK tax on it. But that likely will be a rarity. You'll have to do a lot of research to find such situations (Hint: these would be places with lots of UK Expats ;-)

The tax advantage of gaining residency abroad (and it will likely require more than simply getting a foreign visa...you have to establish 182 days of physical residency) is that foreign earnings are not subject to tax in the UK. Of you still derive salary, rent, interest, etc. in the UK you'll be subject to tax on those amounts. But be reducing your reported "domestic" (UK) income you may drop into a lower tax bracket...so lower rates. As well you may (if you have transferred assets abroad and are generating income as a result) be subject to reduced taxes in your "adopted" country.

Gazza-d

The Philippines has a tax arrangment with the UK so no double taxation. If you became a non dom you can have the Philippines government pay your UK pension. The tax rate on pensions in the Philippines is I believe currently 0%.

Stokkevn

You are correct about the tax rate - all income originating from overseas is taxed at 0%. You need to fill in a 1904 form at the local tax office to get your Philippine TIN ( tax identification number ). About the UK end of things I don't know anything as I don't get any UK pensions so never looked at it, but if you need to ask a question about it, these accountants ( https://www.expertsforexpats.com/exp...at-tax-advice/ ) give free advise, at least to start with.

The Flying Welshman

Thanks, I looked at the link and it said:
I won't have a UK address because I am selling my house, so the biggest worry I see is losing the personal tax allowance. This, of course, will affect many UK expats in all countries.

Stokkevn

10 years on I still have a personal tax allowance and my tax is done by an accountant that would not cheat 1p looking at the questions I get every year.

The Flying Welshman

Much appreciated. I have applied for a free tax consultation at experts for expats.

sunnydays

Dear Flying Welshman, yes you will pay tax on your UK gov pensions avoiding that is possible if you lose your British citizenship and become a Filipino !!! Pensions are not taxed here what so ever.

Best to have a local bank account and I recommend BPI, they have branch in London and so open one there and transfer your pension into it. BPI on line are very nice and you can change money through their UK branch and transfer it to a BPI or any other bank here.

Nice thing about the Philippines is that English is understood everywhere and there are English newspapers to read.

Stokkevn

BPI are stopping transferring money to the Philippines as of 23rd Dec, so there is no advantage of having a BPI account any longer. HSBC has both UK and Ph branches, not sure what their exchange rates are like, I am sure there are others.

The Flying Welshman

Thank you sunnydays. If I get an SRRV Visa I will be able to open a bank account. My local government pension can be paid into any bank in the world.

I'm aware that English is widely spoken and that is one of the main reason for my choice. My previous experiences lead me to conclude that an expat is more likely to get fleeced by people if he cannot speak the local language. Communicating in English greatly reduces that risk.

I'm aware that pensions are not taxed there. As far as citizenship is concerned, I checked and according to the Transferwise blog:
It is especially less likely as I will be paying them income tax each month!

Do you know if I get a Philippines passport with an SRRV Visa? That would be nice. Again according to the Transferwise blog, the Philippines does allow dual citizenship. **CORRECTION** Dual citizenship is only allowed for natural-born Filipinos. This means I would have to renounce by British Citizenship to get Filipino Citizenship, but I am not ready to do that for the small tax saving I would get.

sunnydays

Yes the Bank does not do the exchange from the 23rd but they recommend another exchange service that they can arrange and is more efficient the say although I have had excellent service from them. The HSBC has the main branch in Makati and another branch in Alabang. THATS ALL. We enjoy our local BPI bank where we are recognised and chat chat when we visit, they also have a "Preferred clients" system where if you deposit a certain amount you have priority treatment.

sunnydays

The citizenship I found out by a meeting with another Brit chap in a book stall near Los Banos and he was chuffed to say he didn't pay any UK tax but it was a busy thing to arrange and necessitated a trip to NBI Manila. This place is where you swear your allegiance to the Philippines. I hope you can open and account with your SRRV, we had trouble because the banks want to see an ACR card...but that was 10 years ago. You can always begin with a sterling account with HSBC and take pesos from them until you get settled. As a newcomer to the Philippines I enjoyed the HSBC "dongle" that provides another "one time" login password. This enables you to check your account from any internet cafe safely. HSBC rate are higher than BPI.

mikemike

taking philippines citizenship is more than being here for 10 years. You can do it in 5 years. suggest you research this and its implications for any assets held here on death etc