Philippines

{"ftc_utility":"high","fbar_trigger_notes":"Many US expats in the Philippines hold Philippine peso accounts at local banks such as BDO, BPI, or Metrobank. If aggregate balance across all foreign accounts exceeds $10,000 USD at any point during the calendar year, FBAR filing (FinCEN 114) is required. Philippine bank accounts are reportable foreign financial accounts. FATCA reporting on Form 8938 may also apply at higher thresholds.","ftc_utility_reason":"The Philippines taxes residents on worldwide income at rates up to 35%, which is higher than or comparable to US rates on many income levels. Foreign Tax Credits are highly useful for US expats with Philippine tax obligations, as Philippine taxes paid on Philippine-source income can offset US tax liability dollar-for-dollar. For income taxed in both jurisdictions, FTC often reduces or eliminates US residual tax more effectively than FEIE for higher earners.","presence_day_count_notes":"The Philippines offers 30-day visa-free entry for most nationalities including US citizens, extendable up to 36 months through the Bureau of Immigration. Long-stay options include the Special Resident Retiree Visa (SRRV) and various working visas. The 330-day physical presence test is practically achievable given the long-term stay options available. Days spent outside the Philippines during travel do not interrupt the bona fide residence test if residence is established. US citizens working in the Philippines on employment visas or with established bona fide residence can qualify for FEIE on Philippine-earned income.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":18000,"local_tax_rate_on_earned_income":0.35,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Philippine tax residents (resident citizens or resident aliens) is subject to regular progressive income tax rates up to 35%. The Philippines taxes resident citizens on worldwide income. Philippine law does provide a retirement benefit exclusion for qualifying Philippine government or private sector retirement under BIR-approved retirement plans, but this does not extend to foreign pension plans. US expats receiving private pension income while residing in the Philippines should treat it as taxable.","tax_rate":0.35,"locally_taxed":true},"social_security":{"notes":"US Social Security benefits received by Philippine residents are generally not subject to Philippine income tax in practice, as Philippine tax law focuses on compensation and business income. The 1982 US-Philippines tax treaty does not contain an explicit Social Security article, but Social Security payments sourced from the US are typically treated as foreign-source pension income. The practical tax risk is low but formal treaty protection is absent. US expats should confirm current BIR guidance.","locally_taxed":false,"treaty_protection":false},"roth_distributions":{"notes":"Roth IRA distributions are not specifically recognized under Philippine tax law or the US-Philippines treaty. Qualified Roth distributions that are tax-free under US law may still be treated as taxable income in the Philippines if the recipient is a Philippine tax resident, as the Philippines taxes worldwide income of residents without a carve-out for Roth accounts. Treaty relief is not available for this specific scenario.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The US-Philippines tax treaty (1982) does not contain specific provisions covering US retirement account distributions in the way some modern treaties do. Resident citizens and resident aliens of the Philippines are taxed on worldwide income including foreign pension and retirement distributions. Distributions from US 401(k) or IRA accounts received by Philippine tax residents are generally subject to regular progressive income tax rates up to 35%. No treaty exemption exists for these specific account types. US expats who become Philippine tax residents should plan accordingly.","tax_rate":0.35,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.15,"notes":"Philippines taxes capital gains separately from ordinary income. Sale of domestic shares not traded on the exchange is taxed at 15% of net gain. Sale of real property located in the Philippines is taxed at 6% of gross selling price or fair market value, whichever is higher.","details":{"tax_type":"Capital Gains Tax","country_name":"Philippines","country_iso_code":"PHL","source_references":["PwC Philippines Tax Summaries","NIRC as amended by TRAIN Law (RA 10963)","BIR Revenue Regulations"],"last_verified_date":"2026-06-03","general_description":"The Philippines imposes separate capital gains taxes rather than treating gains as ordinary income. Rates depend on asset class. Sale of unlisted domestic shares is taxed at 15% of net capital gain. Sale of real property by individuals is taxed at 6% of the gross selling price or zonal/fair market value, whichever is higher. Gains from listed shares traded on the Philippine Stock Exchange are subject to a stock transaction tax of 0.6% of gross selling price rather than CGT. Foreign-sourced capital gains of resident citizens are taxable; non-resident aliens are generally taxed only on Philippine-source gains.","corporate_capital_gains":{"rate":0.15,"tax_treatment":"Domestic corporations pay 15% CGT on net gain from sale of unlisted shares. Sale of real property by domestic corporations is subject to 6% CGT. Gains on listed shares are subject to the 0.6% stock transaction tax."},"individual_capital_gains":{"rate":0.15,"tax_treatment":"Individuals pay 15% CGT on net gain from sale of unlisted domestic shares. Sale of real property in the Philippines is taxed at 6% of gross selling price or fair market value, whichever is higher. Gains on listed shares traded on the PSE are subject to 0.6% stock transaction tax, not CGT. These are final taxes separate from ordinary income tax brackets.","real_property_rate":0.06,"listed_shares_transaction_tax":0.006}}}

{"notes":"Dividends paid by domestic corporations to resident citizens and resident aliens are subject to a 10% final withholding tax. Non-resident aliens engaged in trade or business pay 20% final WHT. Non-resident aliens not engaged in trade or business pay 25% final WHT. Non-resident foreign corporations pay 25% final WHT, reduced to 15% if the foreign country allows a tax credit of at least 10% against taxes owed. Inter-corporate dividends between domestic corporations are generally exempt.","rates":[{"rate":0.1,"type":"withholding","notes":"Resident citizens and resident aliens receiving dividends from domestic corporations"},{"rate":0.2,"type":"withholding","notes":"Non-resident aliens engaged in trade or business in the Philippines"},{"rate":0.25,"type":"withholding","notes":"Non-resident aliens not engaged in trade or business in the Philippines"},{"rate":0.25,"type":"withholding","notes":"Non-resident foreign corporations - standard rate"},{"rate":0.15,"type":"withholding","notes":"Non-resident foreign corporations where home country grants at least 10% tax credit - reduced rate"}]}