# What is the Philippine Tax Status of Expats on the ‘Extended Visa’ Option?



## pagbati (Apr 9, 2014)

I’m trying to establish the tax status of expats residing in the Philippines on the ‘Extended Visa/ Tourist Visa’ option. To quote from the Philippine Bureau of Inland Revenue’s website, under Chapter 2, General Principles, Section 23, Part D, it states: _“An alien individual, whether a resident or not of the Philippines, is taxable only on income derived from sources within the Philippines”_. As confirmed by other sources, expats are also referred to as resident aliens and non-resident aliens.

It's clear that an expat residing on an SRRV will be classified as a resident alien. 

However, what is an expat residing on the ‘Extended Visa’ option classified as?” Is it a non-resident alien?


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## Manitoba (Jun 25, 2014)

mabrouk said:


> .....
> 
> However, what is an expat residing on the ‘Extended Visa’ option classified as?” Is it a non-resident alien?


Yes extended visa is a non resident. You are not subject to tax on money earnd outside the country and cannot work inside the country.


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## pagbati (Apr 9, 2014)

Manitoba said:


> Yes extended visa is a non resident. You are not subject to tax on money earnd outside the country and cannot work inside the country.


Thanks Manitoba. So if you're on an SRRV, you would be allowed to work inside the country, is that right? I'm not planning to, just tying up loose ends re the difference between the two from a tax perspective.


Further, if you are classified as non-resident in Ph, does this mean that back in your home country, you are still liable for income tax on all other income, irrelevant of where it was derived from? I appreciate that this is a potential ‘can of worms’ as each country has it’s own tax laws.


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## 197649 (Jan 1, 2013)

mabrouk said:


> Thanks Manitoba. So if you're on an SRRV, you would be allowed to work inside the country, is that right? I'm not planning to, just tying up loose ends re the difference between the two from a tax perspective.
> 
> 
> Further, if you are classified as non-resident in Ph, does this mean that back in your home country, you are still liable for income tax on all other income, irrelevant of where it was derived from? I appreciate that this is a potential ‘can of worms’ as each country has it’s own tax laws.


That will depend on your country tax laws. As for us Americans we are taxed everywhere we go not matter what. Unless you renounce your citizen ship. So you need to check your countries rules


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## pagbati (Apr 9, 2014)

*Knowing Your Country's Tax Laws*



c_acton98 said:


> That will depend on your country tax laws. As for us Americans we are taxed everywhere we go not matter what. Unless you renounce your citizen ship. So you need to check your countries rules


Thanks c-acton98. I thought as much. My original question is linked to establishing which visa option is best from a tax perspective. As you imply, there’s no difference if you’re from the USA, as you’re taxed wherever you go. 

However, this is not the case with Ireland and UK. Certain criterion must be met, but essentially, Irish and UK citizens that are classified as non-resident in Ireland or UK, do not pay tax on income earned outside the country. Therefore, depending on one’s nationality and of course one’s financial situation, this aspect can be very important when deciding on which visa to choose.


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