Uk expat taxation in the Philippines
 

I headed this as Uk expat as other overseas nationals living in the Philippines may have a different experience.

The BIR have confirmed that UK expats who are resident and NOT citizens do not pay taxes arising from income or capital gains derived from income or gains arising from overseas resources.

Any expats who have not paid UK CGT whilst they have not been Uk residents do not have to pay tax on such gains if they are crystalised in the tax year prior to their return.

Should you be taking a Non EU spouse back to the UK route and have to declare that investments are taxed and prove it then as far as the Philippines goes this section 23 B & D of the Philippines tax code is proof that you are tax exempt for the duration of your stay in the Philippines. I would be surprised if this is new to the Uk government authorities but copying and pasting it as a resource may prove to be helpful when making an application via the savings route.

So invest away as a non Uk resident and Non Philippines citizen free of CGT implications......for now!!

Hope this helps

''RN 2017-017870



Dear Sir/Madam:

Greetings! Thank you for communicating with the BIR Customer Assistance Division.

In reply, please be guided by the taxation on income based on the National Internal Revenue Code:
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.


For other inquiries, you may contact us to 981-7003; 981-7020; 981-7040; 981-7046; 981-7030 or visit www.bir.gov.ph. We appreciate your continued support.



Sincerely,

The BIR Customer Assistance Division
E-mail: [email protected]''

Re: Uk expat taxation in the Philippines
 

Thanks for that Mike, good news.