BIR Registration for Foreigners

@FindlayMacD

It only amounts to PHP5,000 a month and I know that to some of you guys out there that don't amount to much in the grand scheme of things, but to me it's a lot, instead of remitting 70K per month to the Philippines I would be able to remit 75k and begin to pay off some of my debts.

Yes as a foreigner you need to attend the BIR RDO 37 or 38 near North Edsa

You could ask an accountant who would get you to sign a limited document to be able to transact with BIR on your behalf

Hi,

I am an Austrian and I have the same issues. What I know so far is that if you stay longer than half a year in the Philippines your income from abroad is  taxable in the Philppines. So you need to register with the BIR and fill in an income tax return. To do this you need a TIN Number first. I got mine in Quezon City when I bought the condo in Boracay. As soon as I will get my pension (4 years from now), I will have to report the income to the BIR and pay income tax in the Philippines.

Next thing to know is that there could be an agreement between the Philippines and the home country. If there is a treaty between the Philippines and your home country regarding the double taxation, you might be able to pay the taxes in the Phillipines. In my case, Austria and the Philippines have such a treaty. To get the pension free of tax in the home country, you need to fill in a form (BIR 902) "Application for Tax residency certificate (TRC)". When you have your TRC you can send it to the financial authorities in your home country and you should get your pension free of income tax from the home country, however, you need to pay the taxes in the Philippines. Btw. you need to be a permanent resident of the Philippines. If you are here on a tourist visa, it will not work. 

Income sourced from within the Philippines is taxable in the Philippines

Pensions are taxed under reciprocal tax treaties and your home country can inform you of the tax implications of having your pension paid overseas

As a guide

For foreigners, Income from sources outside the Philippines is not subject to Tax in the Philippines

You can find clear current information on resident status and tax implications on the Philippines KPMG and PWC website

I have never heard about EU pension income or any other foreign income being taxed in The Philippines. The taxrate for pensionsI is zero.

Unless, there is a specific  taxation treaty that subjects foreign income to the Philppines.

As far as I know, BIR only taxes foreigners for income generated in the Philippines.

It is not likely that you are liable to pay tax in the Philippines on any pension that you receive from abroad. Confirmation of that can be found on the Bureau of Internal Revenue website: Tax Code - Bureau of Internal Revenue. Click on 'Tax on Income' and scroll down to Chapter 2, General Principles, Article D.

    Income sourced from within the Philippines is taxable in the Philippines
Pensions are taxed under reciprocal tax treaties and your home country can inform you of the tax implications of having your pension paid overseas
As a guide
For foreigners, Income from sources outside the Philippines is not subject to Tax in the Philippines
You can find clear current information on resident status and tax implications on the Philippines KPMG and PWC website
   

-@mlapenna0

Somehow I think the momentum of paying BIR a tax on your UK pension is so great that your sensible comment will be ignored. I know for a fact that the tax treaty in the USA requires taxes to be paid only to the country where the pension is sourced. Excepting countries without tax treaties like Iran or India or China, I think there is a better than even chance that similar tax treaties exist with other western countries. Having said that, don't expect a clerk at BIR to know or care about that and tell you; BIR will be happy to take your money as there are a lot of poor people here who could really benefit from your contribution.

in 2019 I went into the BIR office in Kalibo and got a TIN within about 15 minutes.  I'm not paying any taxes but needed it for some other government paperwork.  My only income is retirement income from the USA, which is not taxed by the Philippines.   Only taxed by the US.

@danfinn

My British friends confirmed that they are NOT taxed in the Philippines for pension income from the UK.

    in 2019 I went into the BIR office in Kalibo and got a TIN within about 15 minutes.  I'm not paying any taxes but needed it for some other government paperwork.  My only income is retirement income from the USA, which is not taxed by the Philippines.   Only taxed by the US.
   

    -@Lenny Gemar

When my ex-Filipina wife went to the Dumaguete BIR to pay capital gains on some land we had sold, she received a TIN number almost immediately. Excellent customer service 😄

    @danfinn
My British friends confirmed that they are NOT taxed in the Philippines for pension income from the UK.
   

    -@emvaningen

Absolutely which means the OP post is completely irrelevant with an incorrect premise that was not chsllenged from the start. It ought to be taken diwn because it will only serve to confuse future potential retirees who would be better off not checking the forum for advice.

        @danfinnMy British friends confirmed that they are NOT taxed in the Philippines for pension income from the UK.        -@emvaningenAbsolutely which means the OP post is completely irrelevant with an incorrect premise that was not chsllenged from the start. It ought to be taken diwn because it will only serve to confuse future potential retirees who would be better off not checking the forum for advice.        -@danfinn

I am the OP and I wonder how you come to the conclusion that my original post is "completely irrelevant". I went to my local BIR office and was told in no uncertain terms that as a foreigner I have to apply for BIR registration in Manila and this was confirmed by another member of this forum in an earlier reply to my post.

@mlapenna05

Yes as a foreigner you need to attend the BIR RDO 37 or 38 near North Edsa

You could ask an accountant who would get you to sign a limited document to be able to transact with BIR on your behalf

@mlapenna05

As far as I know you only have to register at BIR if you are subject to taxation in the Philippines.

Having said that, having a TIN is handy, because many banks (in Europe) are now asking for proof of tax residency as part of their Know Your Customer programme.

   
        @danfinnMy British friends confirmed that they are NOT taxed in the Philippines for pension income from the UK.        -@emvaningenAbsolutely which means the OP post is completely irrelevant with an incorrect premise that was not chsllenged from the start. It ought to be taken diwn because it will only serve to confuse future potential retirees who would be better off not checking the forum for advice.        -@danfinn
I am the OP and I wonder how you come to the conclusion that my original post is "completely irrelevant". I went to my local BIR office and was told in no uncertain terms that as a foreigner I have to apply for BIR registration in Manila and this was confirmed by another member of this forum in an earlier reply to my post.

@mlapenna05
Yes as a foreigner you need to attend the BIR RDO 37 or 38 near North Edsa
You could ask an accountant who would get you to sign a limited document to be able to transact with BIR on your behalf
@mlapenna05
   

    -@FindlayMacD

You need to more carefully choose your information sources. Why would a BIR clerk be read-up on foreign tax treaties? It is your job to know the rules if you want to pay the least in taxes. Yes, the base requirement is, as the agent said, in general to get a TIN to pay taxes. But mzny countries have reciprocal treaty agreements that you pay taxes only in your home country. In that case you have no TIN requirement for pension income because there is no tax on foreign pendion income from UK, US and other select countries. And I am not saying BIR itself is not a good information source; they have some pretty sharp people there who know the score. But, maybe the local BIR clerk behind the desk is not the most knowledgeable? Obviously they were not in this case.

@danfinn

I think we agree, but allow me to state it from my pov.  Many EU countries use the UN template for the treaty to avoid double taxation.

according to article 18 or 19 income from pensions is taxed by the country of residence, except certain state pensions which are taxed at source in the country where they are paid out. I think it's different for US citizens because the US taxes worldwide income.

The Philippines do only tax income generated in The Philippines

    @danfinnI think we agree, but allow me to state it from my pov.  Many EU countries use the UN template for the treaty to avoid double taxation.according to article 18 or 19 income from pensions is taxed by the country of residence, except certain state pensions which are taxed at source in the country where they are paid out. I think it's different for US citizens because the US taxes worldwide income.The Philippines do only tax income generated in The Philippines         -@emvaningen

The US taxing worldwide doesn't appear to be related to this discussion because as a US citizen, the only question here was my (foreigner's) tax obligation to the Philippines (BIR and TIN if you will) on home-sourced income. Now, rhe other side of the coin that we have not yet discussed would be the tax obligation to the US of my US citizen wife on her Philippine-sourced  SSS payments. Like in the EU, this is reciprocal so my wife pays taxes to BIR on her Philippines-sourced SSS pension but there is no obligation to pay US taxes on it. So even though we are normally taxed on Philippine income sources, pensions are not included. We also have various foreign tax credits and income limits to largely avoid double taxation on non-pension foreign income sources.

All my money & benefits remain in the US. My income is below the threshold requiring to file or pay  taxes. The last year I filled was in 2017.

When I transfer money over for monthly expenses, it's my money not income earned.

Why would any expat look for a ways to pay taxes? If you open up enough can of worms, you're likely to find a worm.

Enjoy your meal.

    All my money & benefits remain in the US. My income is below the threshold requiring to file or pay  taxes. The last year I filled was in 2017.
When I transfer money over for monthly expenses, it's my money not income earned.

Why would any expat look for a ways to pay taxes? If you open up enough can of worms, you're likely to find a worm.

Enjoy your meal.
   

    -@Enzyte Bob

I am not looking for a way to pay taxes, I am looking for a way to avoid paying UK taxes as I no longer live there and I haven't even visited there for eight years. Bur HMRC in the UK says unless I have registered as a Philippines taxpayer then I must still be a UK taxpayer and they tax me on my extra employer pension.

Very interesting and learning I am FindlayMacD. While I don't receive a state or federal pension (self funded superannuation) and all are not taxable in Australia but means tested at the government level. Why does your government tax you on a pension? My super is not taxable and since drawing a pension the earnings are not taxable. Don't get me wrong but I'm still a tax payer in Oz on my investment accounts but not taxable as under AU 20K per year earnings.

Honestly you work all your life and then the government tries to beat you all the way to the grave. Very glad I don't need their pittance pension. Governments trying to balance the books at the detriment to those that contributed for 40 or 50 years.

Cheers, Steve.

I am not looking for a way to pay taxes, I am looking for a way to avoid paying UK taxes as I no longer live there and I haven't even visited there for eight years. Bur HMRC in the UK says unless I have registered as a Philippines taxpayer then I must still be a UK taxpayer and they tax me on my extra employer pension.
   

    -@FindlayMacD

That's new information and a different twist. In the US you are ALWAYS a US taxpayer whereas in the UK, you can (by your information) avoid being a UK taxpayer by registering as a raxpayer in a different country...apparently. But according to your UK treaty with PH, you pay no PH taxes on UK pensions. Are you trying to avoid also paying UK taxes on your UK pension by registering a TIN with BIR as a Philippine taxpayer (knowing you owe no PH taxes on UK pensions)?  Lol. I am no expert but something tells me you won't get away with it haha. UK will still likely require you to be taxed on your UK pension as if you lived there but I am only speculating to be sure lol 

@FindlayMacD i am British and also pay tax in UK.

As my gov pension plus private pension exceed my UK tax allowance. I also was told by uk pensions that although i live in the Philippines full time.( since 2011)

My pensions are sourced from the UK and thus taxable in the UK.

I have read other posts that some Brits register with the BIR in Philippines then apply for a refund from the UK. I cant see how this is legal as the dual tax agreement is so you dont pay tax in 2 countries.

As we dont pay tax in the Philippines it would not apply.

We will have to accept it and hope the tax allowance in UK increasess to pay less tax.

I have British friends who pay no tax over private British pensions.

Check the agreement. In many agreements taxation of pensions is defined in article 18/19.

The BIR site has most agreements available for downloading.

    I have British friends who pay no tax over private British pensions.
Check the agreement. In many agreements taxation of pensions is defined in article 18/19.
The BIR site has most agreements available for downloading.
   

    -@emvaningen

The main problem for me, because I live at Languindingan (Near CDO) is it seems that registering with BIR would require a trip to Manila to the one particular BIR office that foreigners are allowed to register at.

@FindlayMacD

May I know what type of VISA you have?

Actually it is Article 17

PENSIONS

Subject to the provisions of Article 18, pensions and other similar remuneration paid in consideration of past employment to a resident of a Contracting State shall be taxable only in that State.

With the exemptions (state funded pensions) listed in Article 18

@emvaningen

BIR in Philippines no pension not like in other countries if you file taxes they have refund and pension  like in America all American have a ITIN And SSN have a pension not like in Philippines pay tax no tax refund and pension  to people in Philippines separate SSS pension employee or voluntary payment to SSS private holder other countries you pay tax have pension and refund direct to people and in Philippines direct private intity.

    @FindlayMacD
May I know what type of VISA you have?
   

    -@emvaningen

13a immigrant by marriage

@FindlayMacD

Understand that there are many changes under Republic Act (RA) No. 11032.  Most foreigners need to state they are seeking a TIN per E.O 98 by using BIR Form 1904 ONLY!!!  [ Application for Registration for One-Time Taxpayer and Persons Registering under E.O. 98 (Securing a TIN to be able to transact with any Government Office)]. Do NOT let any local try to get you fill out 1905 or any other form.  It is very possible that local offices remain very confused because of the Revenue Memorandum Circular (RMC) No. 120-2023, the BIR announced the availability of the Digital Taxpayer Identification Number (TIN) starting November 21, 2023.  The digital TIN ID is an electronic version of the old physical TIN card issued by the BIR, containing the taxpayer’s personal information.  There was a different form number for foreigners to use but most were not aware.  Now, in 2024, to get the digital TIN, they must first enroll to get an account by registering in ORUS using their permanent email address. 

Go here and try:  https://www.bir.gov.ph/index.php/regist … r-tin.html

Move down to the 13th listing and click on that link.... That is the E.O 98 processing.

    @FindlayMacD i am British and also pay tax in UK.As my gov pension plus private pension exceed my UK tax allowance. I also was told by uk pensions that although i live in the Philippines full time.( since 2011)My pensions are sourced from the UK and thus taxable in the UK. I have read other posts that some Brits register with the BIR in Philippines then apply for a refund from the UK. I cant see how this is legal as the dual tax agreement is so you dont pay tax in 2 countries.As we dont pay tax in the Philippines it would not apply.We will have to accept it and hope the tax allowance in UK increasess to pay less tax.        -@temploni

A correct summation Temploni. The UK tax allowance thresholds have been frozen from 2021-2028. As a result more UK pensioners are falling into the 'fiscal drag' tax net. The UK state pension is already one of the lowest in Europe