Taxes in the Philippines
Understanding Philippine taxation is important for expats. The good news: the Philippines taxes based on income source rather than worldwide income for most non-citizens.
Tax Residency Classification
Resident Citizens: Filipino citizens residing in PH - taxed on worldwide income
Resident Aliens: Foreigners residing in PH without definite departure date - taxed on Philippine-source income ONLY
Non-Resident Aliens Engaged in Trade/Business (NRAETB): Foreigners staying 180+ days/year - taxed on Philippine-source income
Non-Resident Aliens Not Engaged in Trade/Business (NRANETB): Foreigners staying <180 days - taxed on PH income via withholding
Key Point for Expats
Most expats are only taxed on Philippine-source income. If you're working remotely for a foreign company, earning from foreign investments, or have retirement income from abroad, that income is generally NOT taxable in the Philippines.
Digital Nomad Visa Tax Status
DNV holders are explicitly NOT considered tax residents. This means:
- No Philippine income tax on foreign-source income
- Only pay taxes at source (your home country/employer's country)
- Clear legal framework for remote workers
Income Tax Rates (2026)
Progressive rates for residents and NRAETBs:
| Annual Income (PHP) | Tax Rate |
|---|---|
| Up to 250,000 | 0% |
| 250,001 - 400,000 | 15% of excess over 250K |
| 400,001 - 800,000 | ₱22,500 + 20% of excess over 400K |
| 800,001 - 2,000,000 | ₱102,500 + 25% of excess over 800K |
| 2,000,001 - 8,000,000 | ₱402,500 + 30% of excess over 2M |
| Over 8,000,000 | ₱2,202,500 + 35% of excess over 8M |
Non-residents (NRANETB) pay a flat 25% on Philippine-source income.
Tax by Visa Type
| Visa | Tax Status | Taxable Income |
|---|---|---|
| Digital Nomad Visa | Non-resident | None (foreign income) |
| SRRV (Retirement) | Resident alien | PH-source only; pensions exempt |
| SIRV (Investor) | Resident alien | PH-source only |
| 9(g) Work Visa | Resident alien | PH-source (salary) |
| 13(a) Spouse Visa | Resident alien | PH-source only |
| Tourist/Extensions | Non-resident | None typically |
SRRV Tax Benefits
SRRV holders enjoy:
- Exemption from income tax on pensions and annuities
- Exemption from travel tax (stays <1 year)
- Duty-free import of household goods ($7,000)
Filing Requirements
- Tax year: Calendar year (January-December)
- Filing deadline: April 15
- Form: BIR Form 1700 (individuals)
- Payment: Through banks or online (eFPS)
Tax Treaties
The Philippines has tax treaties with 43+ countries including:
- United States, United Kingdom, Canada, Australia
- Germany, France, Japan, South Korea
- Treaties may reduce withholding on dividends, interest, royalties
Apply for tax treaty relief through BIR procedures.
Important Considerations
Remote workers:
- Foreign income not taxed if you're a resident alien
- Ensure clear separation between foreign clients and local work
- DNV provides clearest legal framework
Retirees:
- Pension income generally not taxed
- Investment income from abroad not taxed
- SRRV provides specific exemptions
Pro Tips
- •Resident aliens are only taxed on Philippine-source income - foreign income is generally exempt
- •Digital Nomad Visa provides clearest tax status for remote workers
- •SRRV holders get tax exemptions on pensions and annuities
- •Keep documentation proving income sources are foreign
- •Check tax treaty benefits with your home country
Have questions about taxes in Philippines?