# Foreign Retirement Pension Tax



## isotope (May 19, 2016)

Hello you lovely, humidified people...........

My understanding is that foreign retirement pensions are not taxed in the philippines, and I have a few questions about this.

1. Is there any legal requirement to notify any Philippine government agency/entity about getting this tax free/exemption status, or is this status just acquired auto-magically upon arrival?

2. The SRRV promotes as one of it's benefits "_exemptions from income tax for pensions and annuities_". Anyone know what the difference is with this specific SRRV benefit, and the general Philippines retirement pension tax free/exemption status you get even if you don't have a SRRV?


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## Gary D (Oct 28, 2013)

I believe the Philippines no longer taxes overseas earnings, actually I'm pretty sure they don't as my wife stopped paying a couple of year after she arrived in the UK. Your overseas pension is the equivalent to overseas earnings so no tax. The tax exemption applies to pensions earned in the Philippines. For most expats this is not a concern but for a few countries that have a reciprocal arangement with the Philippines, the UK being one of them, you can opt to have your UK pension paid in the Philippines, effectively by the Philippines government. This would attract the zero tax rate.


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## pagbati (Apr 9, 2014)

*Tax on Pensions from Abroad*



isotope said:


> Hello you lovely, humidified people...... My understanding is that foreign retirement pensions are not taxed in the philippines, and I have a few questions about this.
> 1. Is there any legal requirement to notify any Philippine government agency/entity about getting this tax free/exemption status, or is this status just acquired auto-magically upon arrival?
> 2. The SRRV promotes as one of it's benefits "_exemptions from income tax for pensions and annuities_". Anyone know what the difference is with this specific SRRV benefit, and the general Philippines retirement pension tax free/exemption status you get even if you don't have a SRRV?


Welcome isotope.

Ans 1. Correct. There is no legal requirement to notify the authorities that you are exempt from paying tax.

Ans 2. My understanding is there is no difference whatsoever. The PRA are simply trying to make the SRRV look attractive. The following statement from the Philippines Bureau of Internal Revenue refers, showing that all 'aliens' are treated equal with regard to taxation, quote: _'An alien individual, whether a resident or not of the Philippines, is taxable only on income derived from sources within the Philippines'._ That means your pension coming from abroad is safe from taxation here.


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## isotope (May 19, 2016)

Looking at the UK/PH Double Tax Agreement, I think for UK pensions, private retirement pensions are tax free in PH, but public retirement pensions are not.

In the Australia/PH DTA, I believe both private and public are tax free in PH, but I am having a hard time verifying this with anyone. Seems to be a rare occurance with few retirees living off their own retirement pensions in the PH (which would normally have been taxable in their source country).

Seems many more in PH are funding their retirement on traditional fully government funded state or age pensions where no tax is paid regardless of country of residence.


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## isotope (May 19, 2016)

mabrouk said:


> Ans 2. My understanding is there is no difference whatsoever. The PRA are simply trying to make the SRRV look attractive.


I have raised this with the PRA a few times, but no reply yet. (helpful tip: do NOT go to the PRA's contact page linked from their main page - I dont think that friendly face was quite what they wanted to convey to prospecting clients).

Anyway, I guessed there would be some advantage with the SRRV, but your probably right. I remember reading once that their other benefit of easier access to getting driver's licenses was pretty much useless.

Thanks for the good news on your reply Mabrouk.


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## pagbati (Apr 9, 2014)

*Tax on Pensions from Abroad*



isotope said:


> ........... In the Australia/PH DTA, I believe both private and public are tax free in PH, but I am having a hard time verifying this with anyone........


Isotope, I understood your initial question to be about taxation in the Ph. I have no idea what the procedure is for Australians paying tax in their home country when they reside here. All I'm saying is that you are not liable to pay tax in the Philippines on any pension that you receive from abroad. Confirmation of that can be found on the Bureau of Internal Revenue website: Tax Code - Bureau of Internal Revenue. Click on 'Tax on Income' and scroll down to Chapter 2, General Principles, Article D.


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## isotope (May 19, 2016)

Your initial response was gleefully understood Mabrouk, but I got it a tad late. I just posted that DTA reply to Gary without seeing your reply, and by the time I saw your reply, .... well, you get the idea.

Timing was never my strong point  Now fishing on the other hand .. no .. no... I was never good at that either.


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## isotope (May 19, 2016)

<deleted as wrong thread>


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## pagbati (Apr 9, 2014)

isotope said:


> Your initial response was gleefully understood Mabrouk, but I got it a tad late. I just posted that DTA reply to Gary without seeing your reply, and by the time I saw your reply, .... well, you get the idea. Timing was never my strong point  Now fishing on the other hand .. no .. no... I was never good at that either.


isotope, as your fellow countrymen like to say, 'no worries'. By the way, don't write off the SRRV just yet. Despite the poor website, there are many benefits to having an SRRV; the main negative is obviously the cost.


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## expatuk2016 (Mar 20, 2016)

*Tax on pensions*

Before we arrived here in 2011 we were told by the Philippines Embassy Ambassador
that it would be best to report to our local BIR within 2 weeks of our arrival in the Philippines which we did, ( its so that you can say you have asked ! )
I was told to fill out some forms and after 2 days to report back to the office and I was told that I was free of paying tax !
But I was told to report to our local city Hall also and the Barangay Kapitan just as to let them know who I was etc.
got a few funny looks but they were happy I reported to them.
Avoid manila at all costs and find a local office for everything official if you can.

just advice


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