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How to pay taxes in Manila as an expat consultant?

Tax query: I have a work visa, I’m registered with the Department of Trade and the BIR and have permanent residency in the Philippines. I do my consulting by videoconferencing from my base in Manila. All my consulting clients are in the UK and pay me through my UK bank account or PayPaldotcom. Where should I pay income tax or do I have a choice? Thank you.

Michael Craig: You are technically not doing business locally and not getting paid locally, I don’t think you need to pay for Ph income taxes. However if you send PH registered invoice to your customers, then you should pay for taxes.

Ada Strickland: While I’m not using my official receipts the invoices I sent my clients to have my Philippine address on

Adelina Austin: Get a license accountant, regarding bir taxes to make legal business, they should know

Michael Craig: The other matter to consider is if you have a work visa in the Philippines to render work. I suggest you immediately stop invoicing using a Ph address and consult a tax lawyer to understand What you can or cant do.

Ada Strickland: Michael Craig: Have a work visa. Thanks

Tessa Taylor: Should probably look into setting up a Hong Kong based company … their tax rates for offshore work are very attractive 😏

Malaysia Lamb: You’re not supposed to pay tax in the PH given the setup of your business.

Callie Welch: You technically didn’t need to register.

Ada Strickland: Ironic given how difficult it was to do that. However I intend eventually to do business with local companies

Callie Welch: Ada Strickland: Not trying to discourage you, but just be prepared for unending, nightmarishly brutal government red tape, and regulation, as well as having to give nearly half your income to the government.

Roman Woods: And local accountants and license this and that and every paw out for a bite, we wonder ok what next knowing some permit will come due .. mayors permit this month 🙄I should clarify we are a local business so we get every department from health to fire dept and on and on but in the end it’s a very gratifying thing to be above water lol ..

Callie Welch: Roman Woods: It is truly horrendous what they do to small business owners. Everyone has their hand out, yet you are the poor soul that has to work hard for them.

Roman Woods: What’s scary is it isn’t corruption it’s really just tax law but it’s only the accountants who can navigate it due to ever changing rules.

Harrison Hayes: If you’re a UK citizen, then you should consult with a UK tax expert. A quick google search, I found this…see image. But please talk to a tax expert/accountant from UK. And then from there you may need to consult with a PH accountant.

Daniel Maldonado: Foreigners residing in the Philippines do not pay tax on income (whether active or passive income) earned abroad

Isaiah Jefferson: Okay so the cold hard facts are that if you are deriving income from the U.K. you should be paying tax. If you are conducting work in the Philippines (even if it is for international clients) then you should be declaring locally too. There is a double taxation agreement in effect however which normally gives taxing rights to the Philippines. But most people simply don’t declare in either tax jurisdiction …

Kyler Ramos: Check out on Double Taxation Avoidance Rules too. I don’t believe you may be required to pay taxes in Philippines. It is wise to consult with a taxation lawyer or an accountant

Dylan Mcgee: Based on the above description, your tax classification in the Philippines is ‘resident alien engaged in trade or business’. Thus, you will be taxed in all of your income within the Philippines. Regardless of your clients abroad, you will still be taxed here since the performance of the services happened in the Philippines (situs of taxation).

Andres Evans: Your residing in the pi and as you sayd bir registered So you need to get your bir ledger from the bir and work it from there. I know many try to avoid the tax pay but from experience you are more vulnerable as foreign. Dont give that chance. In the long run better pay. Wife is not counting as dependend, child yes.

Dallas Graves: Since your company is registered in the Philippines, you have to pay tax.Also, by law, you need to issue Official Receipt to your transactions either locally or internationally as this is how BIR will see your tax due.Better seek accountant in Manila to set it up for you now and to know what tax deductions you can claim for your business.

Graham Owens: Have you attended their seminar? I recently registered also as a self employed. Similar to yours. I was told there is a weekly seminar that will familiarize the type of taxes needs to be paid. Of course if you have registered with BIR, you most definitely need to make tax payments as well. Check with the RDO that you registered with.

Adelina Austin: UK accountant is different from Philippines rules about taxes, Heller

Karter Wolfe: no need to pay taxes if your bussines is internet based..

Graham Owens: I beg to differ. I just attended the seminar and they do require to pay taxes. Mine is online.

Mason Love: You’re a permanent resident of the PH (Not a foreign resident), and your business address is here, so your taxes are due to the PH (I think better, lower biz taxes, but get a trust-worthy accountant-auditor to process. Preferably U.P. or Ateneo grad.)


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