OFWs and taxes?

[bad driver]

hello,

Do OFWs pay taxes here (or the family that receives the remittance)? shouldn't they be tax-free na since they are spending more than 6 months out of this country (therefore not residing in the Pinas?). Diba nagbabayad na sila ng tax abroad?

Or taxed lang yung mga nakalista sa POEA? taxable ba income kahit padala lang yun ng kamag-anak? thanks. I'm guessing an income is an income, eh?

[BoEinG_747]

exempted sa tax ang mga OFW sa pinas
but i think should stiil file a tax exemption
on embassy for future reference ...IMO

[delprado]

hello,

Do OFWs pay taxes here (or the family that receives the remittance)? shouldn't they be tax-free na since they are spending more than 6 months out of this country (therefore not residing in the Pinas?). Diba nagbabayad na sila ng tax abroad?

Or taxed lang yung mga nakalista sa POEA? taxable ba income kahit padala lang yun ng kamag-anak? thanks. I'm guessing an income is an income, eh?

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non-taxable po yong pera sa pinas... normally sa mga seamen di talaga sila nagbabayad nung buwis... pero pag land workers.. nagbabayad sa bansang pinagt-trabahuhan nila....


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[Macky]

Medyo magulo nga pero nung nasa US pa kami, di naman kami nagbabayad ng tax dito sa Pinas. Siguro dahil na rin sa may kalakihan na ang tax na binabayaran namin sa US. Yung SSS contribution lang yata ang itinuloy naming bayaran sa Pinas.

As far as remittances, di rin taxable yun AFAIK mapa-seaman o mapa trabahador sa lupa.

Sending electronic stuffs to the Philippines is a different story..... nagbayad na nga kami ng sales tax sa US tapos bayad pa din kami ng tax sa Pinas..... doble-dobleng tax para sa bagong bayani daw ng bayan.

[van118]

a different story..... nagbayad na nga kami ng sales tax sa US tapos bayad pa din kami ng tax sa Pinas..... doble-dobleng tax para sa bagong bayani daw ng bayan.

Yah right, In the gov't's initiative to earn more money from OFWs, they have made it a point to thoroughly inspect baggages of incoming OFWs so they can charge you all the taxes they want despite already paying for taxes in the country from which these OFWs came from. Imagine, customs officials asking you to pay tax for an expensive wristwatch you are wearing, giving the reason that this was a luxury item that needs to be taxed. (Happened to a colleague of mine.)

[nitrox]

Walang tax na binabayaran ang OFW sa Pinas, although may income tax akong binabayaran sa country Im working in. Yung pera na nire-remit sa Pinas wala ding tax, although merong binabayarang bank charges/remittance fees (w/c could include taxes na din).

Mostly ang binabayaran ng OFWs is the OEC (Overseas Employment Cert), w/c makes the person exempt from paying airport & travel taxes sa Pinas. Mas malaki din ang singil sa mga OFWs renewing passports sa embassy (2x the cost ata). Then there's the POEA fees, Medicare/Philhealth or SSS fees that needs to be paid as well. Parang taxes na rin yung mga yon.

Kung padala naman ng mga electronic items, mas safe if its via door-to-door thru sea cargo (instead of bringing it personally). Pwede nga magpadala ng tv dun, basta kasya ito sa balikbayan box e. Usually declared yon as personal effects, thus di na mainit sa mga mata ng customs.

[bad driver]

thank you for the answers! much appreciated.

[Field Master]

How about the case of an employee of an american company whose earning US Dollar salary but working in the philippines? What type of tax should be applied to him? Is there any specific tax for expat?

[the_wildthing]

The general rule is if you're earning while in the Philippines, it is taxed under Phil. tax laws. Any earnings while outside is not counted.

Any tax accountants or tax lawyers care to comment?

[bad driver]

yeah, earning in the philippines from a US source. like web cam strippers like me?

[ranod55]

sa tagal kuna dito sa abroad i'd never pay taxes what's so ever,the sponsor country specially middle east not required any taxes all are free,maybe some had to pay terminal taxes in airport but not so quiet big,but income taxes i'd never heard in middle east!
well some item's need to pay tax,specially when you are sending stuff's-like electronics.appliances,equipments.etc...eg. TV-more than 21' inches need to pay tax,then more than one items(electronics,appliances,etc..) also need to pay tax,even the equipments like-generator(portable) it depend how many horse power. but iam quiet sure any kind of car ,kay bago o' luma,kahit ano pang brand niyan siguradong may tax.
now,speaking of cargo-lahat yan ay nasubukan kuna,mapa sea o' air freight ay lahat yan ay darating sayo,ang deperensiya lang ng sea cargo ay matagal,mostly 45 days ang mabilis at kung mamalasin ka eh baka more than 2months.ang problema pa sa sea cargo kung kunti lang ang ipapadala mo eh wag na.lalot kung may mga bagay na mababasag at masisira at delikado.dahil pag salansan ng mga tauhan ng sea cargo eh they will not care whatever you put inside specially electronics,hanggat maaari kung gagamitin mo ang sea cargo at iam sure kailangan mo rin magtipid dahil mas-mura ang charge sa sea kumpara mo sa air freight cargo,mga bagay lang na hindi masisira kahit ito'y madaganan.
for me.subok kuna ang air freight cargo at recently i'd just sent 900 kgs. mga personal effect.bago pa ako dumating para mag-bakasyon sa atin (Pinas) eh nauna na sa akin,tulad ng dati no sign of open even pointed objects or scratches.wika nga arrive safe and sound completly.
i hope i give something more informative which might help you and iam still here middle east until oil and gas are available,good day to you pal....

[qman]

sa tagal kuna dito sa abroad i'd never pay taxes what's so ever,.

Really, unang alis ko sa Saudi I worked sa ABV bawas na sa suweldo ang tax namin sa pinas annually. Even after my stint sa Saudi I still pay my annual income tax until nadeklara na wala ng tax tayo i think that was 1998.

[yebo]

the law on income tax exemption for ofw is exactly what the name implies, overseas income. so kahit na foreign denominated ang sweldo ng worker pero within philippine territory hindi exempted sa tax. in my case even if i am a registered ofw and work outside the philippines, since i worked a few months in sulu sea last year then the company paid philippine income taxes for me in 2005 (buti na lang company paid ehehehe!)

this is also one reason why i rejected a high salary offer sa subic, double sana ng sweldo ko ngayon kaso taxes will eat 40% of it naman so di na bale. US$ ang sweldo and double my present pay, but the taxes!

[pink_cadillac]

Dollar deposits are not taxable if I'm not mistaken.

[NightRock]

Dollar deposits are not taxable if I'm not mistaken.

Meron din po...


Since mag abroad ako 1990 I never pay Income Tax...

[Field Master]

Yebo, Wildthing, Baddriver,
Ganito kasi yung case ng company ko (sige aaminin ko na).
In the past we don't pay tax as the company declaration in the philippines is customer representatives and there was just a handlful staff that time. The headquarter is in US and the regional office is in Singapore. That time the local staff use to have offices in our local subcontractor facilities so walang permanent business address yung local staff. As years progresses so is the business the management decided to have physical office to house the expanding number of staff. Kasabay yung 35% tax.

The whole concept of OFW not being tax is because they are earning dollars and helping dollar inflow in the country.

[qman]

Yebo, Wildthing, Baddriver,
The whole concept of OFW not being tax is because they are earning dollars and helping dollar inflow in the country.

dito tama ka kaya pinanukala ni Devenecia (Correct me here if im wrong) na isa sa incentive ng ofw ay walang tax. Kaya nga ka level na namin si Rizal, Bonifacio etal mga bayani ng bayan

[yebo]

fieldmaster,
the fact is, HINDI KA OFW. you are working inside philippine territory my friend, so you arenot covered by the income tax exemption law and therefore are required to pay income tax. if your argument hinges on the fact that you earn dollars and therefore not pay personal income tax, then all the exporters of philippine made goods who also earn dollars will also not pay tax. gets?

gaya nga ng sabi ko, ako na isang registered OFW e nagbayad ng personal income tax last year kasi i worked for 23 days in sulu sea, e ikaw pa kaya na sa pinas talaga nag-work full time at hindi overseas?

pink cadillac,
deposits are not taxable (peso or foreign currency) but the interest earned by such deposits are taxable. kahit na martian dollar pa yan pag kumita yan ng interest sa philippine bank may witholding tax yan. di mo lang siguro nakikita at automatic ang kaltas ng tax sa interest earnings.

[bad driver]

tama ata si Yebo.... sana exporters are tax free kung applicable and sinabi mo, Fieldmaster. How I wish na that is the case. Si Pacman pinagbabayad din ng tax.

Ang tanong eh, would you pay taxes if the government doesn't even have a clue that you are even employed (kasi nga US based company). It's either you don't pay at all or pay the exact prescribed amount. dba? walang grey area

Is everyone here 100% honest in their taxes even if you can get away with it 100%?

[Tacoma_34]

to hell with the government