Gazza-d

HSBC have four or five branches scattered around Manila plus one in Cebu and Davao. The only time I needed to go the a branch, I chose Makati, was to open the account. My local town in the UK hasn't had a branch for over 10 years. When I need cash I just use an atm or for large amounts transfer online to our PNB account.

sunnydays

What part of Suffolk do you do you herald from. I lived and worked in Norwich for 5 years then moved to Ipswich in Suffolk noticing that there is a huge difference between the people of neighbor counties. Norfolk has the broads and Suffolk has 5 rivers. My interests are fishing and sailing so comfortable in both places.

Gazza-d

When we are not in the Philippines we live in Haverhill

sunnydays

Not familiar with Haverhill. I was taken to a pub in the country where the seats were church pews and they sold Kippers wrapped in newspapers. ...I miss my Kippers here, they sell smoked fish in the supermarkets but not the same.

Stokkevn

Make your own kippers, you get herring here several times a year.

sunnydays

Thanks for that, remember reading some years ago that the chemical used for the "Smoked" flavor is a cancel risk ???? Won't stop me having them in moderation. The Nile Perch were done with chemical and they were delicious, the meat just slid of the fish similar to our Cod. Lived in Alnwich some years ago and they had a brick funnel near the beach with the nails still in the inside wall, ..took me sometime to realise what the purpose was.

RedApe

I think that would depend on the terms of the tax treaty. The taxation would be "at source" - British pension IS taxed.

"Article 18 Governmental Functions
(1) Remuneration paid out of public funds of the United Kingdom or Northern Ireland or of the funds of any local authority in the United Kingdom to any individual in respect of services rendered to the Government of the United Kingdom or Northern Ireland or a local authority in the United Kingdom in the discharge of functions of a governmental nature, shall be taxable only in the United Kingdom unless the individual is a Philippine national without also being a United Kingdom national."
https://assets.publishing.service.go...-_in_force.pdf

I'm not sure if that means a renunciate is untaxed on the pension...or if they will be continued to face UK taxation because they were British citizens while acquiring the Pension. If it was the former I wonder why not more UK citizens aren't renunciates.

In any case Homeland Revenue withholds the the tax money, perhaps at even above the normal tax rate, and require you to submit your tax forms to get the refund.

Lots of Filipinos work in the US and receive US Social Security as they were taxed on it in the US through withdrawal. They are taxed on the Social Security benefits just like other US taxpayers in the US. If they have too much tax withdrawn (25.5% is the standard) they have to submit a US 1040 to show that they fall into a lower tax bracket. You can be subject to tax on 50 percent of your benefits if your income is $25,000 to $34,000 for an individual or $32,000 to $44,000 for a married couple filing jointly. up to 85 percent of your benefits being taxable if your income is more than $34,000 (individual) or $44,000 (couple)"

[Note this is NOT a 50% or 85% TAX rate...it means that if you exceed the income level they will take 50% or 85% of your benefits and treat THAT as if it were income...and tax you at the appropriate rate for your income bracket].

Andrew_AJP

Re tax on Pension that is only after £12500 so basic state pension will not be affected tax wise given how "generous" the UK state pension is, yes?

The Flying Welshman

It seems I have made enough posts to give links now. Here is where I found some information https://www.gov.uk/hmrc-internal-man...ual/intm343040. My state pension is taxable, and my other pension from a local authority is also taxable because it is a pension from a "Local Authority (excluding those for trading activities such as Water Board, CEGB)" and the accompanying "note 3" does not mention the Philippines. Another general link here https://www.gov.uk/government/public...s-tax-treaties but I have not read it in full.

So I will be over the basic £12500, and I will pay UK tax under the UK scheme. I think I would have to relinquish my UK citizenship to get tax free. I am a long way from doing that and I doubt I would want to.

Gazza-d

I don't think you need to relinquish your British citizenship just become a non dom.

David Mashael

Exactly right Gazza. I have been non dom most of my working life and continuously since 1982. No UK tax.

The Flying Welshman

I believe I would have to relinquish my British Citizenship to get onto the Philippines tax system instead of the UK one because of the dual taxation agreement. If I retain British Citizenship, I pay British tax, because both my pensions are "government" ones, according to the HMRC link I posted about the dual taxation agreement (DTA). But that is off the radar for me because 1) I am not anywhere near qualifying for a Philippines passport and 2) even if it were possible I would only save 20% of anything in excess of the personal allowance, so with the loss of NHS benefits etc I would lose more than I would gain.

The acid test is, does anyone here with a British passport and a government pension in excess of the personal allowance live in the Philippines and NOT pay income tax by being able to use their taxation system? I very much doubt there is.

TFW.

Stokkevn

Just go to your nearest tax office here and fill in a 1904 form, this will enter you into the Philippine tax system, you will be issued a Philippine TIN at that time.

The Flying Welshman

Found at https://www.bir.gov.ph/index.php/reg...n-for-tin.html and I will keep the link for when I require this to help confirm Philippines residency. It won't change my tax payments though, but it will help with a proof of my physical presence there if I am allowed to get a Philippines TIN.

David Mashael

I don't think so. If you're outside UK for more than 9 months each financial year, you are classified as non dom and not liable to pay income tax. Not related to your status in Philippines at all. I have been non dom for tax purposes for the past 38 years. The loss of NHS services is a different matter. Yes, if you are not normally resident in UK you will not be able to avail of the NHS service.