Country topic
Tax in Philippines
A tax adviser's summary (reviewed 2 July 2026) defines a resident alien as a person who lives in the Philippines with no definite intention as to length of stay and is not a mere transient or sojourner. An expatriate on a contract for an indefinite period potentially falls into this category. The Code itself defines a resident alien only as an individual whose residence is within the Philippines and who is not a citizen (Section 22(F)), so how a long visitor stay counts is not stated there. [T1] [T2] The same summary says most expatriates are classed as non-resident aliens because their contract is for a specified period. A non-resident alien who stays more than 180 days in a calendar year is deemed engaged in trade or business; one who stays 180 days or fewer may be deemed not engaged. The Code (Section 25(A)(1)) says a non-resident alien who stays more than 180 days in a calendar year is deemed a 'nonresident alien doing business in the Philippines'. [T1] [T2]
What we found
The research, with its sources.
Research information, not advice. Rules change, so check the source before you act on one.
- A tax adviser's summary (reviewed 2 July 2026) defines a resident alien as a person who lives in the Philippines with no definite intention as to length of stay and is not a mere transient or sojourner. An expatriate on a contract for an indefinite period potentially falls into this category. The Code itself defines a resident alien only as an individual whose residence is within the Philippines and who is not a citizen (Section 22(F)), so how a long visitor stay counts is not stated there. [T1] [T2]
- The same summary says most expatriates are classed as non-resident aliens because their contract is for a specified period. A non-resident alien who stays more than 180 days in a calendar year is deemed engaged in trade or business; one who stays 180 days or fewer may be deemed not engaged. The Code (Section 25(A)(1)) says a non-resident alien who stays more than 180 days in a calendar year is deemed a 'nonresident alien doing business in the Philippines'. [T1] [T2]
- The Code states that an alien individual, whether a resident or not of the Philippines, is taxable only on income derived from sources within the Philippines (Section 23(D)). The text was read on a private legal database hosting the Code as enacted in 1997, not on an official site. [T2]
- The Code lists compensation for labor or personal services performed in the Philippines as income from sources within the Philippines (Section 42(A)(3)). Read with Section 23(D), pay for work done in the Philippines is within reach even when a foreign employer or client pays it, while pay for work done elsewhere is not. How the tax bureau treats a short visitor stay, or remote work paid from abroad, is not stated in the sources read. [T2]
- The Bureau of Internal Revenue's regulation sets graduated rates from 2023: 0% up to PHP 250,000; 15% from 250,000 to 400,000; 20% from 400,000 to 800,000 (base tax PHP 22,500); 25% to 2,000,000 (base 102,500); 30% to 8,000,000 (base 402,500); and 35% above (base 2,202,500). The regulation prints this for compensation income. [T3]
- A tax adviser's summary says resident aliens and non-resident aliens doing business pay the same graduated rates on compensation, and that a non-resident alien not engaged in trade or business pays a flat 25% on income from Philippine sources. The Code (Section 25(B)) sets that 25% on the entire Philippine-source income of such a person, salaries and wages included. [T4] [T2]
- For resident and non-resident aliens engaged in business, the maximum rate on income subject to final tax (usually passive investment income) is 20%, according to the same summary. For non-resident aliens not engaged in business it is a flat 25%. [T4]
- A self-employed citizen or resident alien pays the graduated rates, or, if not VAT-registered and with gross receipts under the VAT threshold of PHP 3 million, may opt for 8% on gross receipts above PHP 250,000 instead of the graduated rates and percentage tax. The statute sets that option in the section for citizens and resident aliens, and whether a non-resident alien can use it was not confirmed. [T4] [T5]
- The summary says aliens receiving income from foreign sources are not allowed a credit for foreign income taxes against Philippine income tax. [T6]
- The summary lists double taxation agreements with Australia, Canada, New Zealand and the United States of America among others. What a treaty does for you depends on your residence and the type of income. [T6]
- United States: the IRS lists the Philippines among its income tax treaties in force. The convention was signed at Manila on 1 October 1976. Its saving clause (Article 6(3)) lets each country tax its own citizens and residents as if it did not apply. A resident of one country is exempt in the other on employee pay if present fewer than 90 days in the year, employed by a resident of the home country, and not paid by a permanent establishment in the other (Article 16); independent services can be taxed by the other country at 90 days or more, with a fixed base, or above US$10,000 from its residents (Article 15). [T7] [T8]
- Canada: Finance Canada lists the Canada-Philippines Income Tax Convention, signed on 11 March 1976, among those in force. Independent professional services are taxable only in your country of residence unless you have a fixed base there, stay 183 days or more in the calendar year, or earn more than C$2,500 from residents of the other country. Employment income is taxable only at home if you are in the other country no more than 183 days and either earn C$2,500 or less there or your employer is not resident there and the pay is not borne by a permanent establishment there. [T9] [T10]
- Australia: Treasury's table lists the agreement as signed on 11 May 1979 and in force from 17 June 1980. Employment pay is taxable only in Australia if you are in the Philippines no more than 183 days, your employer is not a Philippine resident and the pay is not deductible by a permanent establishment there; independent services can be taxed in the Philippines at 183 days, with a fixed base, or above A$10,000 from Philippine residents. [T11] [T12]
- New Zealand: Inland Revenue lists the 1980 agreement as in force (signed 29 April 1980, in force 14 May 1981), with a second protocol signed 21 February 2002 in force from 2 October 2008. Independent services are taxable only at home unless performed in the other country and you are there more than 183 days or have a fixed base there, and the other country may also tax if gross fees from its residents exceed NZ$11,000. Employment pay follows a 183-day rule. [T13] [T14]
- The tax year runs 1 January to 31 December and returns are due on or before 15 April of the following year. If the tax due exceeds PHP 2,000 it may be paid in two equal instalments, on 15 April and 15 October. Substituted filing by an employer does not apply to non-resident aliens engaged in business. [T15]
- The retirement authority lists exemption from tax on pensions and annuities among SRRV benefits, without explaining its scope. Taxes in your home country are separate and are not covered here. [T16]
The country
More on Philippines.
Topics
More about Philippines.
Questions about Tax in Philippines.
When am I a resident for tax in the Philippines?
A tax adviser's summary says a resident alien lives there with no definite intention as to length of stay. The Code only says residence must be in the Philippines. Most fixed-term expatriates count as non-residents; over 180 days in a calendar year, a non-resident is treated as doing business there.
What are the income tax rates in the Philippines?
From 2023 the Bureau of Internal Revenue schedule is 0% up to PHP 250,000, 15% to 400,000, 20% to 800,000, 25% to 2,000,000, 30% to 8,000,000 and 35% above. A non-resident alien not engaged in business pays a flat 25% of Philippine-source income, salaries and wages included (Code, Section 25(B)).
Is foreign income taxed in the Philippines?
The Code taxes an alien, resident or not, only on Philippine-source income, and lists pay for personal services performed in the Philippines as Philippine-source. So work done there is within reach even when a foreign employer pays; work done elsewhere is not. Treatment of short visits or pay from abroad is not stated.
Does the Philippines have a tax treaty with my country?
Yes. Official lists show an income tax treaty in force with each of the four: the United States (signed 1976), Canada (1976), Australia (1979, in force 1980) and New Zealand (1980, in force 1981, protocol 2008). What it does for you depends on your residence and the type of income. This is not tax advice.
How and when do I file?
The tax year runs 1 January to 31 December and the return is due on or before 15 April. If tax due exceeds PHP 2,000 it may be paid in two instalments, on 15 April and 15 October. Self-employed citizens and resident aliens under PHP 3 million in receipts may opt for 8% on receipts over PHP 250,000.
Sources
Where each figure comes from.
Every figure on this page links to the page we read, with the date we checked it.
- [T1] Philippines individual tax: residence, PwC Worldwide Tax Summaries (private adviser, not official). Checked 16 October 2026.
- [T2] National Internal Revenue Code (Republic Act 8424), sections 22, 23, 25 and 42, Lawphil Project, Arellano Law Foundation (private legal database) hosting the 1997 statute. Checked 16 October 2026.
- [T3] Revenue Regulations No. 11-2018 (income tax schedule for 2023 onwards), Bureau of Internal Revenue (Philippines). Checked 16 October 2026.
- [T4] Philippines individual tax: taxes on personal income, PwC Worldwide Tax Summaries (private adviser, not official). Checked 16 October 2026.
- [T5] Republic Act 10963 (TRAIN Act): individual income tax rates, Lawphil Project, Arellano Law Foundation (private legal database) hosting the 2017 statute. Checked 16 October 2026.
- [T6] Philippines individual tax: foreign tax relief and tax treaties, PwC Worldwide Tax Summaries (private adviser, not official). Checked 16 October 2026.
- [T7] United States income tax treaties A to Z, Internal Revenue Service. Checked 16 October 2026.
- [T8] Philippines: income tax convention of 1976, Internal Revenue Service (treaty text). Checked 16 October 2026.
- [T9] Tax treaties in force, Department of Finance Canada. Checked 16 October 2026.
- [T10] Convention between the Philippines and Canada for the avoidance of double taxation (1976, electronic copy), Department of Finance Canada. Checked 16 October 2026.
- [T11] Income tax treaties in force, Australian Treasury. Checked 16 October 2026.
- [T12] Agreement between Australia and the Philippines for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (signed at Manila, 11 May 1979), United Nations Treaty Series, vol. 1217, no. 19635 (registered by Australia). Checked 16 October 2026.
- [T13] Philippines: 1980 agreement, Inland Revenue (New Zealand), Tax Policy. Checked 16 October 2026.
- [T14] New Zealand-Philippines double tax agreement as amended (text, PDF), Inland Revenue (New Zealand), Tax Policy. Checked 16 October 2026.
- [T15] Philippines individual tax: tax administration, PwC Worldwide Tax Summaries (private adviser, not official). Checked 16 October 2026.
- [T16] Special Resident Retiree's Visa (SRRV), Philippine Retirement Authority. Checked 16 October 2026.