Tax Residency Certificate

Old Feb 16th 2024, 10:49 am
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Default Tax Residency Certificate

Hello there,

As I understand it a tax residency certificate can be issued once someone has legally resided in PH for 183 days after a number of years of residence. How regularly are the certificates required to be updated and is there any tax reporting to BIR that requires logging of days in and out of the country?

If I wished to nominate PH as tax residency, setup (tax free) payments from UK and subsequently spend time in a third country (not the UK) would this matter and would it be picked up by any authority?

I can potentially envisage a situation where I am not tax resident in UK, or paying tax in PH or any third country in which I spend time. That can't be correct, I think?
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Old Feb 17th 2024, 1:21 am
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Default Re: Tax Residency Certificate

Originally Posted by smallpiff
Hello there,

As I understand it a tax residency certificate can be issued once someone has legally resided in PH for 183 days after a number of years of residence. How regularly are the certificates required to be updated and is there any tax reporting to BIR that requires logging of days in and out of the country?

If I wished to nominate PH as tax residency, setup (tax free) payments from UK and subsequently spend time in a third country (not the UK) would this matter and would it be picked up by any authority?

I can potentially envisage a situation where I am not tax resident in UK, or paying tax in PH or any third country in which I spend time. That can't be correct, I think?
A lot will depend on what visa you use to establish residency here. As holders of the SRRV we are exempt from paying local tax on funds remitted to our accounts here.These are renewed every two years. Other visas such as tourist or alien employment have different rules.(Some Banks here will not open accounts for "aliens" unless on certain visas). If you marry a Filipina then there are a different set of visas you can apply for, all with their own conditions. However, if I was to get a job here then I would have to pay tax locally. I got a Tax Identification Number (TIN) some years ago from the local tax office in order for HMRC to allow my private pensions free of tax. I still have to pay HMRC income tax on my State pensions as these are exempted from the double taxation agreement between UK and Philippines and are over the UK tax free allowance.
What would be your source of income if you manage to establish tax residency here? I don't think where you live would make any difference but it would depend on the type of visa, or permission to reside.My TIN is indefinite, other than for change of address etc. The TIN number is similar to your UK NI number in that once issued its yours for life - or when you give it up if leaving here.
If there were any queries it may likely be the third country you mention wanting to try and tax you there!
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Old Feb 17th 2024, 9:53 am
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Default Re: Tax Residency Certificate

Originally Posted by quiltman
A lot will depend on what visa you use to establish residency here. As holders of the SRRV we are exempt from paying local tax on funds remitted to our accounts here.These are renewed every two years. Other visas such as tourist or alien employment have different rules.(Some Banks here will not open accounts for "aliens" unless on certain visas). If you marry a Filipina then there are a different set of visas you can apply for, all with their own conditions. However, if I was to get a job here then I would have to pay tax locally. I got a Tax Identification Number (TIN) some years ago from the local tax office in order for HMRC to allow my private pensions free of tax. I still have to pay HMRC income tax on my State pensions as these are exempted from the double taxation agreement between UK and Philippines and are over the UK tax free allowance.
What would be your source of income if you manage to establish tax residency here? I don't think where you live would make any difference but it would depend on the type of visa, or permission to reside.My TIN is indefinite, other than for change of address etc. The TIN number is similar to your UK NI number in that once issued its yours for life - or when you give it up if leaving here.
If there were any queries it may likely be the third country you mention wanting to try and tax you there!
Thanks for the response. Visa could be either spouse or retirement. Income would be private pension at 55 (no tax paid when established as non-resident) and private rental income earned in UK and third country (Spain). Both rentals taxed at source. If I became tax resident in Philippines with TIN from local address I am hoping that I can split my time between Philippines (90 days), Spain (<180 days accepting the brexit restrictions) and UK (<90 days retaining non residency). Under this I believe the UK wouldn't care based on their rules, Spain wouldn't care either. Would the 90 day stays in Philippines impact the tax free status? It potentially seems no-one would care about this. Which is good, given the shameful direction of tax increases in the UK
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Old Feb 17th 2024, 8:48 pm
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Default Re: Tax Residency Certificate

This is now too complex for my old brain to sort out. I think you need to contact a tax lawyer here as I have no idea of the implications of your suggested timeline! On the face of it, it does seem doable.
If you go the retirement visa route - SRRV - then you can remit monies here without paying local tax, with spouse visa - 13A or Balikbayan visa, I do not know the limitations on how long absences from the Philippines would affect your tax status.
Don't now how useful this link is https://www.upwork.com/hire/tax-law-professionals/ph/

sorry not to be of more help.
Good Luck!
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Old Feb 18th 2024, 1:51 am
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Default Re: Tax Residency Certificate

Currently there is no tax on remittances into the Philippines.
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Old Feb 18th 2024, 7:50 pm
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Default Re: Tax Residency Certificate

Thanks for all the replies. Seems like it has possibilities, without definitive certainty. As mentioned worth proceeding with caution from a legal perspective.

Whether it is a sensible and sustainable way of life probably remains the bigger question.....
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Old Feb 19th 2024, 2:19 am
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Default Re: Tax Residency Certificate

I have HSBC Premier in Ho ng kong Jersey and Philippines. Each year they ask me to establish my tax residency. As I have no income in UK or Philippines ( other than my small UK pension ) its easy. I tell UK Im resident in Philippines where I have a TIN. I tell Philippines Im tax resident in HK , where my stock dividends go, and Im a permanent resident there but have no tax number any more and I tell Philippines Im tax resident in UK. or something like that... havent had an issue in past 7 years , and as Im retired I have very little income these days anyways.
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Old Feb 19th 2024, 10:10 am
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Default Re: Tax Residency Certificate

Originally Posted by freebie
I have HSBC Premier in Ho ng kong Jersey and Philippines. Each year they ask me to establish my tax residency. As I have no income in UK or Philippines ( other than my small UK pension ) its easy. I tell UK Im resident in Philippines where I have a TIN. I tell Philippines Im tax resident in HK , where my stock dividends go, and Im a permanent resident there but have no tax number any more and I tell Philippines Im tax resident in UK. or something like that... havent had an issue in past 7 years , and as Im retired I have very little income these days anyways.
I've heard similar stories from others. Seems to in-part rely on having a benign tax regime like HK involved, and be platformed in said third country. Thanks for the response.
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